What drives housing price dynamics: cross-country evidence

BIS Quarterly Review  | 
08 March 2004
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 |  14 pages

House prices generally depend on inflation, the yield curve and bank credit, but national differences in the mortgage markets also matter. House prices are more sensitive to short-term rates where floating rate mortgages are more widely used and more aggressive lending practices are associated with stronger feedback from prices to bank credit.

JEL classification: G120, G210, C320.