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Home Sweet Home: Financial Development and Homeownership

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  • Ishani Tewari

Abstract

Do improvements in credit markets restrict or broaden economic disparities? Deregulation of intrastate branching, an exogenous shock to U.S. mortgage markets, led to an increase in the overall stock and flow of mortgages. This increase was disproportionately higher for marginal borrowers such as lower income, younger and black households. Technology adoption by banks and lower downpayments explain some of this higher homeownership. Only commercial banks, the specific financial institutions affected by the policy, drive these findings. There was no increase in delinquencies, suggesting that it was not simply heightened competition encouraging banks to expand lending to riskier borrowers.

Suggested Citation

  • Ishani Tewari, 2011. "Home Sweet Home: Financial Development and Homeownership," NFI Working Papers 2011-WP-10B, Indiana State University, Scott College of Business, Networks Financial Institute, revised Aug 2011.
    • Handle: RePEc:nfi:nfiwps:2011-wp-10b
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    File URL: http://www.indstate.edu/business/sites/business.indstate.edu/files/Docs/2011-WP-10B_Tewari.pdf
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    References listed on IDEAS

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    Cited by:

    1. Adewosi, O. Adegoke & Manu Donga & Adamu Idi & Buba Abdullahi, 2018. "An Examination of Drivers of Financial development: Evidence in West African Countries," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 6(1), pages :132-143, June.

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    More about this item

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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