Adjusting to Macroprudential Policies: Loan-to-Value Limits and Housing Choice

• 成果类型: Article
• 署名作者: Tzur-Ilan, Nitzan
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Dallas
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhad035
• 发表日期: 2023
• 页码: 3999
• 关键词: matching estimators; prices; neighborhoods; exposure; MARKETS

摘要

This study provides novel evidence regarding the effects of loan-to-value (LTV) limits on housing choices. Using a detailed loan-level dataset, I exploit the introduction of LTV limits in Israel. I find that the LTV limits led borrowers to choose housing units that were more affordable, farther from the central business district, and in lower socioeconomic neighborhoods. Additionally, these LTV limits increase interest rates and decrease loan amounts. The findings of this study indicate that macroprudential policies, which focus on the stability of the financial system, have micro implications on location choices, commuting costs, and movement to less-advantaged areas.