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A Housing Market Without Fannie Mae and Freddie Mac: Effect on the Homeownership Rate

The increase in the homeownership rate from 63.8 percent in the first quarter of 1994 to almost 70 percent in the first quarter of 2005 and its subsequent fall to 67.1 percent in the first quarter of 2010 has cast doubts on the effectiveness of the government’s policy of subsidizing mortgage interest rates and lowering down payments. Although a substantial amount of academic research has focused on the effects of GSE intervention in raising the homeownership rate, less attention has been paid to race/ethnic and regional differences. One of the novel features of this study is that it provides a scenario of what would happen to homeownership rate at the national or regional level, and among race/ethnic groups without the GSEs. ....

United States , Freddie Mac , Christianl Redfearn , Christian Redfearn , George Mccarthy , Yuval Elmelech , Lawrencej White , Stuart Rosenthal , Christopher Herbert , Stuart Gabriel , Sanjaya Desilva , Dwight Jaffe , Anthony Yezer , Nahid Kalbasi Anaraki , Roberto Quercia , Susan Wachter , Winnie Tsen , Paul Carrillo , Bureau Of Economic Analysis , Federal Reserve Bank , Census Bureau , Heritage Foundation , Realtor Research , World Bank , Longitudinal Panel Data , Tax Foundation ,