Creating a Development Bank to Finance Affordable Housing in South Africa is a Timely Catalyst to Address Demand and Supply Challenges

2019 ◽  
Vol 6 (1) ◽  
pp. 52-67
Author(s):  
Vuyisani Moss
Keyword(s):  
Interest Rates ◽  
Affordable Housing ◽  
Price Index ◽  
House Price ◽  
Development Bank ◽  
Demand And Supply ◽  
Mortgage Interest ◽  
Private Sector Participation ◽  
Mortgage Finance ◽  
Mortgage Interest Rates

The twin problems of affordability and accessibility that hamper the progress of housing in our country need to be addressed on a sustainable basis and the state needs to take on the role as a facilitator to create the enabling environment to encourage greater private sector participation. As a consequence, it is quite opportune to establish the Human Settlements Development Bank (HSDB). The mortgage finance affordability challenge is also attributable to key essential drivers, namely; house price index, disposable income, and the mortgage interest rates.

Creating a Development Bank to Finance Affordable Housing in South Africa is a Timely Catalyst to Address Demand and Supply Challenges

2020 ◽  
pp. 810-826
Author(s):  
Vuyisani Moss
Keyword(s):  
South Africa ◽  
Interest Rates ◽  
Affordable Housing ◽  
House Price ◽  
Disposable Income ◽  
Development Bank ◽  
Demand And Supply ◽  
Private Sector Participation ◽  
Mortgage Finance ◽  
Mortgage Interest Rates

The twin problems of affordability and accessibility that hamper the progress of housing in our country need to be addressed on a sustainable basis and the state needs to take on the role as a facilitator to create the enabling environment to encourage greater private sector participation. As a consequence, it is quite opportune to establish the Human Settlements Development Bank (HSDB). The mortgage finance affordability challenge is also attributable to key essential drivers, namely; house price index, disposable income, and the mortgage interest rates.

Racial Discrepancy in Mortgage Interest Rates

2014 ◽  
Vol 51 (1) ◽  
pp. 101-120 ◽  
Author(s):  
Ping Cheng ◽  
Zhenguo Lin ◽  
Yingchun Liu
Keyword(s):  
Interest Rates ◽  
Mortgage Interest ◽  
Mortgage Interest Rates

The rise of risk-based pricing of mortgage interest rates in Italy

2011 ◽  
Vol 35 (5) ◽  
pp. 1277-1290 ◽  
Author(s):  
Silvia Magri ◽  
Raffaella Pico
Keyword(s):  
Interest Rates ◽  
Mortgage Interest ◽  
Mortgage Interest Rates

scholarly journals How Mortgage Finance Reform Could Affect Housing

2016 ◽  
Vol 106 (5) ◽  
pp. 620-624 ◽  
Author(s):  
John V. Duca ◽  
John Muellbauer ◽  
Anthony Murphy
Keyword(s):  
Interest Rates ◽  
House Prices ◽  
Capital Requirements ◽  
Finance Reform ◽  
Fannie Mae ◽  
Mortgage Finance ◽  
Mortgage Interest Rates ◽  
Size Limits ◽  
Loan Size ◽  
The Impact

Although major changes in mortgage finance have occurred since the subprime bust, several issues remain unresolved, centering on the roles of Fannie Mae, Freddie Mac, and the FHA. We analyze how some reforms might affect house prices in a framework rich enough to simulate the impact of several reforms which change mortgage interest rates and/or loan-to-value (LTV) ratios of first time home buyers, the key drivers of house prices in recent decades. Simulations suggest that ending the GSE interest rate subsidy would have small effects, while changes in capital requirements or maximum FHA loan size limits would have larger effects.

Changing the Inflation Target

2003 ◽  
Vol 185 ◽  
pp. 50-53 ◽  
Author(s):  
Ray Barrell ◽  
Simon Kirby ◽  
Rebecca Riley
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Price Index ◽  
Short Term ◽  
Inflation Target ◽  
Central Target ◽  
Mortgage Interest ◽  
Monetary Policy Committee ◽  
Bank Of England ◽  
Interest Payments

Since May 1997, when the Bank of England was given operational independence to set monetary policy, the Monetary Policy Committee (MPC) has been responsible for setting short-term interest rates to ensure that the Government's inflation target is met. The target is currently 2.5 per cent and the target measure is the Retail Price Index excluding mortgage interest payments (RPIX). If RPIX inflation deviates more than 1 per cent from the central target, the Governor of the Bank of England is expected to provide a written explanation to the Chancellor of the Exchequer as to why the inflation target has been missed.

scholarly journals Mortgage volume and macroeconomic factors: Evidence from Turkey

2021 ◽  
Vol 9 (4) ◽  
pp. 1504-1520
Author(s):  
Tuğba Güneş ◽  
Ayşen Apaydın
Keyword(s):  
Interest Rates ◽  
House Prices ◽  
Mortgage Market ◽  
Mortgage Loan ◽  
Response Analysis ◽  
Mortgage Loans ◽  
Macroeconomic Factors ◽  
Mortgage Interest ◽  
Mortgage Interest Rates ◽  
Turkish Lira

This paper investigates the impacts of several macroeconomic variables on Turkey's volume of mortgage loans. Johansen cointegration test, vector error correction model, Granger causality tests, variance decomposition, and impulse-response analysis is employed for the econometric analysis to show short and long-run relationships between the variables using time series monthly data from January 2010 to March 2020. Paper results demonstrate that growth of housing credit size negatively correlates with mortgage interest rates, US Dollar/Turkish Lira exchange rate and level of real estate supply. At the same time, there is a positive correlation with house prices. Causal relationships between mortgage volume and macroeconomic indicators are bidirectional for all variables, except for mortgage interest rates. There is a one-way causality relationship from mortgage rates to mortgage loan volume. Econometric analyses show that the recent steep depreciation in the Turkish Lira hurts the Turkish mortgage market. In conclusion, a stable economic environment is essential to build a robust mortgage market.

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