Expectations of housing prices play an important role in real estate research. Despite their importance, obtaining a reasonable proxy for such expectations is a challenge. The existing literature on mortgage research either does not include housing expectation proxies in empirical models, or...

Expectations in housing prices play an important role in real estate research. Despite its importance, obtaining a reasonable proxy for such expectation is a challenge. The existing literature in mortgage research either does not include proxies of housing expectations in empirical models or...

This paper investigates the influence of expected foreclosure duration on a borrower's future default propensity. We use the lagged actual time-varying state-level foreclosure times as proxies for borrower's expected benefit from default as the form of "free rent.'' While existing literature...