Baguma, Jonathan (2024) Housing loan interest rates and house prices in Paris. Bachelor thesis.
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Abstract
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.
| Item Type: | Thesis (Bachelor) |
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| Degree programme: | Human Geography and Planning |
| Supervisor: | Duijn, M. van |
| Date Deposited: | 05 Jul 2024 11:00 |
| Last Modified: | 05 Jul 2024 11:00 |
| URI: | https://frw.studenttheses.ub.rug.nl/id/eprint/4552 |
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