Amir Sufi of the University of Chicago‘s Booth School of Business agrues that a key way housing stimulates growth — the so-called “wealth effect” in which people spend more because they feel richer as the value of their home increases — is likely to be muted because many of the borrowers who spent most liberally during the housing boom aren’t getting mortgages today, writes The Wall Street Journal. (Mr. Sufi’s argument is a variant on a theme offered by Credit Suisse economists Neal Soss and Henry Mo earlier this year).
Housing may not actually save the economy
Most Popular Articles
Latest Articles
Major homebuilder objects to proposed NAR settlement
PulteGroup, one of the largest U.S. homebuilders, says it requires more information before deciding to remain in the class.
-
How AI will transform the mortgage and appraisal industries
-
First Federal Bank to acquire Watson Mortgage Corp.
-
Elevated mortgage rates, home prices harm affordability: Redfin
-
FHFA annual report highlights GSE actions on affordable housing
-
G-Rate sued for gender discrimination, sexual harassment, unpaid comp