Evidence indicates that house prices have become somewhat more synchronized during this century, likely reflecting more correlated movements in long-term interest rates and macroeconomic cycles that are related to trends in globalization and international portfolio diversification. Nevertheless,...

From a broad macro-financial structure perspective, credit conditions have gaven rise to house price booms and busts in several advanced economies (e.g., Ireland, Spain, and the U.S.), and, more specifically in the U.S., an underpricing of risk made possible by regulatory arbitrage and shadow...

Many commentators link the US house price boom and bust of the past decade to an unsustainable easing of mortgage credit standards. However, few existing empirical house price models take account of changes in credit standards, since they are hard to measure. As a consequence, most models...