Fagseminaret er åpent for alle interesserte. Merk at seminaret vil foregå på engelsk.
Tid; Tirsdag 27. januar 2015 kl. 12:15 - 13:15
Sted: UiS, Ellen & Axel Lunds hus, rom H-317
The housing prices in Norway and the ratio of Norwegian household debt to disposable income have reached unprecedentedly high levels in recent years, raising debates about whether there is a serious housing bubble. Contributing to the debates, the current study examines cash-out refinancing in the Norwegian housing market and has two main findings.
First, along with the soaring housing prices, mortgage borrowers significantly extended their debt levels through home equity-based refinancing. This cash-out effect substantially contributed to the high debt-to-income ratio.
Second, mortgage borrowers with large cash-out-to-income ratios are more likely to have financial difficulties. As cash-out refinancing is blamed to be one of the key drivers of the subprime crisis in the United States (Atif Mian and Amir Sufi, 2011 AER), our findings call for more attention to cash-out in the Norwegian housing market