Revisiting the Relationship of Credit with House Price in the Covid -19 Pandemic Period
The American Real Estate and Urban Economics Association- Asian Real Estate Society Tokyo Conference 2022, Tokyo, Japonya, 4 - 07 Ağustos 2022, (Yayınlanmadı)
- Yayın Türü: Bildiri / Yayınlanmadı
- Basıldığı Şehir: Tokyo
- Basıldığı Ülke: Japonya
- Ankara Yıldırım Beyazıt Üniversitesi Adresli: Evet
Özet
With spreading the Covid-19 pandemic, governments have took measures for a short time in many countries to mitigate and/or remove the cost of the negative effects on both the society and the economy of the pandemic, such as loose monetary policy and fiscal policy. In contrast to many countries, when the pandemic started to spread in Turkey, the state deposit banks have cut the interest rates of mortgage loans much more than that of other loans. This reduction in mortgage interest rates has also been in record level historically. However, the literature review shows that there is no study that investigates how the causal relationship between mortgage loan and housing price is affected in Turkey by such a drop in mortgage rates in the pandemic period. Thus, our aim is to revisit the relationship between mortgage loan and house price by considering both pre- Covid-19 pandemic period and the pandemic period. For achieving the purpose, Granger causality test and Toda-Yamamoto causality test are used. Both test results show that in Turkey, there is a mutual causal relationship between mortgage loans and house prices in pre- Covid-19 pandemic period, but no causal relationship between two dynamics in the Covid-19 pandemic period.