Bruno Albuquerque, Martin Iseringhausen, Frederic Opitz, 23 June 2020

The COVID-19 shock has ended the eight-year long US housing market expansion. At the same time, the Federal Reserve and the US Government have deployed significant resources to help weather the ongoing crisis. But the trajectory of the post-COVID-19 recovery remains uncertain. Using a time-varying parameter model, this column suggests that the next US housing recovery may exhibit similar features to the 2012-19 expansion: a sluggish response of housebuilding to rising demand, but a strong response of house prices.

Andrew Fieldhouse, Karel Mertens, Morten Ravn, 02 May 2017

Despite the significant role of housing government-sponsored enterprises in the US mortgage markets, their activities have not been subject to much scrutiny by macroeconomists. Using a monthly sample covering 40 years, this column asks how portfolio mortgage purchase activities have affected the availability of housing credit and key aggregate variables. The results indicate a key role for the agencies in shaping the US economy, as well as significant interactions and similarities between housing credit policies and conventional monetary policy.

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