An Examination of House Price Appreciation in California and the Impact
of Aggressive Mortgage Products
<http://papers.ssrn.com/sol3/papers.cfm?abstract_id=965068>
Source: Social Science Research Network (SSRN)
“This paper studies the phenomenal housing price appreciation in
California in recent years, and examines the impact of increasing
popularity of aggressive mortgage products on the changes in housing
value. The median price of existing, single-family detached homes in the
state jumped from $246,380 in 2001 to $548,430 in 2005. Meanwhile, home
purchases using adjustable-rate mortgages (ARMs) for financing nearly
quadrupled (from approximately 20% to 80%). Using macroeconomic
variables and characteristics of mortgage products, this study
investigates the driving forces behind this booming market and analyzes
whether the increasing use of aggressive mortgage products is the cause
or the effect of the unprecedented pace of appreciation.” Several
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Source: http://www.docuticker.com/?p=11485
