Title: House Prices, Household Credit, and Financial Technology
Abstract: I use peer-to-peer (P2P) credit markets to study how innovations in housing affect households' unsecured credit decisions. Driven by homeowners, I find that a one standard deviation increase in house price growth causes loan origination growth to decrease by 44% of its mean. Conversely, renters switch to P2P loans when housing markets are strong and traditional credit is scarce. Strong housing markets also lead to rising defaults by renters. Overall, developments in housing markets have important implications for evolving credit markets.
Publication Year: 2017
Publication Date: 2017-01-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 1
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