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Residential Mortgage Markets: Current Developments and Future Prospects
Author(s) -
Kaplan Donald M.,
Hartzog B.G.
Publication year - 1977
Publication title -
real estate economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.064
H-Index - 61
eISSN - 1540-6229
pISSN - 1080-8620
DOI - 10.1111/1540-6229.00832
Subject(s) - economics , inflation (cosmology) , secondary mortgage market , mortgage insurance , collateralized mortgage obligation , competition (biology) , shared appreciation mortgage , commercial mortgage backed security , loan to value ratio , interest rate , loan , monetary economics , financial system , macroeconomics , finance , biology , ecology , physics , casualty insurance , theoretical physics , insurance policy
Historical developments as well as current innovations have generated significant changes in the structure and operation of the residential mortgage market. General economic stability, a low inflation rate, growth of savings and loan associations, and strong consumer demand marked the fifteen‐year period immediately following World War II. In contrast, the decade of the sixties was characterized by increased competition in the mortgage market, a series of credit crunches, and increased governmental activity. In reaction to these and related developments, current innovations affecting the mortgage market focus on design of new mortgage instruments, improvements in market efficiency, and reform of financial institutions. If history is a guide, it suggests that the residential mortgage market responds flexibly to adverse conditions.