%0 Thesis
%9 Bachelor
%A Baguma, Jonathan
%D 2024
%F theses_frw:4552
%P 24
%T Housing loan interest rates and house prices in Paris
%U https://frw.studenttheses.ub.rug.nl/4552/
%X The decline of property transactions can have significant repercussion on the economic stability and public  health of citizens in a nation. Following a sudden drop of house transaction volume in 2024 and recent  rise of housing loan interest rates in France since 2022, this paper aims to understand the relationship  between housing loan interest rates and house prices in Paris. The study utilizes multiple linear regression  analysis on secondary data extracted from Banque de France and Demande de Valeur Foncière. Findings  reveal a negative relationship between housing loan rates and house prices, implying that higher interest  rates coincide with decreased house prices. This result is in line with previous theoretical expectations  and empirical results, however limitations such as possible data bias and missing house characteristics  warrants a tentative interpretation. The results imply that implementing interest rate specific policies may  alleviate the decline of property prices.