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Housing finance in the euro area

Author

Listed:
  • Köhler-Ulbrich, Petra
  • Asimakopoulos, Yannis
  • Doyle, Nicola
  • Magono, Ruth
  • Zachary, Marie-Denise
  • Walko, Zoltan
  • Stoess, Elmar
  • Kok, Christoffer
  • Wagner, Karin
  • Valckx, Nico
  • Martínez Pagés, Jorge
  • Drudi, Francesco
  • Lukovic, Vesna
  • Protopapa, Marco
  • Lalouette, Laure
  • Georgakopoulos, Vasilis
  • Gabrielli, Daniel
  • Bartiloro, Laura
  • Doheny, Gavin
  • Mistrulli, Paolo
  • Kasselaki, Maria
  • Gómez-Salvador, Ramón
  • Wolswijk, Guido
  • Ribeiro, Nuno
  • Hasko, Harri
  • Hebbink, Gerbert
  • Zammit, Wendy
  • Weber, Romain
  • Argyridou, Christiana
  • Magri, Silvia
  • Slacalek, Jiri

Abstract

This report analyses the main developments in housing finance in the euro area in the decade, covering the period from 1999 to 2007. It looks at mortgage indebtedness, various characteristics of loans for house purchase, the funding of such loans and the spreads between the interest rates on loans granted by banks and the interest rates banks had to pay on their funding, or the return they made on alternative investments. In addition, the report contains a comparison of key aspects of housing finance in the euro area with those in the United Kingdom and the United States. At the end, the report briefly discusses aspects of the transmission of monetary policy to the economy. JEL Classification: D14, E44, E5, G21, R21

Suggested Citation

  • Köhler-Ulbrich, Petra & Asimakopoulos, Yannis & Doyle, Nicola & Magono, Ruth & Zachary, Marie-Denise & Walko, Zoltan & Stoess, Elmar & Kok, Christoffer & Wagner, Karin & Valckx, Nico & Martínez Pagés,, 2009. "Housing finance in the euro area," Occasional Paper Series 101, European Central Bank.
    • Handle: RePEc:ecb:ecbops:2009101
    Note: 2110208
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    File URL: https://www.ecb.europa.eu//pub/pdf/scpops/ecbocp101.pdf
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    References listed on IDEAS

    as
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    28. Ramon Gomez-Salvador & Nadine Leiner-Killinger, 2008. "An analysis of youth unemployment in the euro area," Occasional Paper Series 89, European Central Bank.
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    Citations

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    Cited by:

    1. Javier Villar Burke, 2016. "Stocks or flows? New thinking about monetary transmission through the lending channel," Working Papers 2016.04, International Network for Economic Research - INFER.
    2. Gareis Johannes & Mayer Eric, 2017. "Heterogeneous Mortgage Markets: Implications for Business Cycles and Welfare in the EMU," German Economic Review, De Gruyter, vol. 18(2), pages 133-153, May.
    3. Leo Kaas & Georgi Kocharkov & Edgar Preugschat, 2019. "Wealth Inequality and Homeownership in Europe," Annals of Economics and Statistics, GENES, issue 136, pages 27-54.
    4. Doyle, Nicola, 2009. "Housing Finance Developments in Ireland," Quarterly Bulletin Articles, Central Bank of Ireland, pages 75-88, October.

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    More about this item

    Keywords

    bank competition; bank funding; bankruptcy; banks; cost of funding (of banks); cost of housing loans; debt service; ECB monetary policy; foreclosure; household debt; household survey; housing finance; insolvency; loan-to-value ratio; loan maturity; monetary policy transmission; mortgage; mortgage covered bond; mortgage equity withdrawal; mortgage interest rate spread; redemption scheme; rental market; retail deposits; securitisation; taxation; US housing market crisis;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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