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Replication data for: Interest Rates and Equity Extraction during the Housing Boom

Version
V0
Resource Type
Dataset
Creator
  • Bhutta, Neil
  • Keys, Benjamin J.
Publication Date
2016-07-01
Description
  • Abstract

    Credit record panel data from 1999-2010 indicates that the likelihood of home equity extraction (borrowing, on average, about $40,000 against one's home) peaked in 2003 when mortgage rates reached historic lows. We estimate a 27 percent rise in extraction in response to a 100 basis point rate decline, and that house price growth amplifies this relationship. Differential responses to interest rates and home price appreciation by borrower age and credit score provide new evidence of financial frictions. Finally, equity extractions are associated with higher default risk, consistent with the use of borrowed funds for consumption or illiquid investment.
Availability
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Relations
  • Is supplement to
    DOI: 10.1257/aer.20140040 (Text)
Publications
  • Bhutta, Neil, and Benjamin J. Keys. “Interest Rates and Equity Extraction During the Housing Boom.” American Economic Review 106, no. 7 (July 2016): 1742–74. https://doi.org/10.1257/aer.20140040.
    • ID: 10.1257/aer.20140040 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-06

Bhutta, Neil; Keys, Benjamin J. (2016): Replication data for: Interest Rates and Equity Extraction during the Housing Boom. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. https://doi.org/10.3886/E116153