• Andreas Methling
  • Kristoffer Herrig Thorndal
4. semester, Samfundsøkonomi (cand.oecon), Kandidat (Kandidatuddannelse)
This thesis investigates the implications of the implementation of interest-only mortgages in Denmark on real housing prices. Employing the synthetic Difference-in-Differences method the findings reveal a positive effect of the adoption of interest-only loans on the house price index in Denmark. The validity of these results is substantiated through an ARDL Bounds test, which confirms the statistically significant relationship between interest-only mortgages and the trajectory of Danish real estate prices. Specifically, a 1\% increase in the proportion of interest-only mortgage loans is associated with a 0.23\% long-term increase in Danish real estate prices. Furthermore, this study underscores the pivotal role played by policy interventions and decisions in shaping the dynamics of the housing market. It underscores the criticality of conducting meticulous assessments to accurately gauge the potential consequences of such policy measures in order to foster stability and sustainability within the housing market. Consequently, this study underscores the significance of interest-only mortgage loans as a policy instrument while acknowledging their dual impact on the housing market. Further research endeavors are recommended to comprehensively elucidate the multifaceted factors that underpin the relationship between interest-only mortgages in and real housing prices in Denmark.
Udgivelsesdato1 jun. 2023
Antal sider79
ID: 532548993