The Evolution Of U.S Housing Finance Market And Its Implication For China

Real estate, especially housing industry is the pillar industry of national economy, and the housing industry can not develop without the support of the financial industry. Goldsmith has pointed out:there is only one main path to world financial development. The United States is has the most developed housing finance market in the world. Researching on the historical evolution of American housing finance market is of great significance for the development of our housing finance market.This paper focus on the American housing finance after World War II.According to the scale growth of the market,the history of the market can be divided into three phases as follows:World WarⅡ-the 60s,which is a steady development phase of housing finance;the 70s-the mid-90s, a phase with financial innovation developed and experiencing the S&L crisis;the mid-90s until now, which is characterized by the development of subprime mortgage and its innovation,however,this phase also experienced a crisis that we will compare with that crisis in 80s in the paper.In this paper,we will study the scale,structure evolution of the market and sum up the universal law of housing finance development.Reviewing the history of the U.S. housing finance,we find out that the American housing finance has transformed from the indirect financing mechanism to the direct finance mechanism, the deposit financial market share has withered and the home mortgage loan market has been related closely to the capital market; The housing financial instruments has tended to diversification; The financial innovation has a double-edged sword function to both promot finance development and aggravate finance instability., and in the development process, the government and optimal allocation of market resources (mainly the development of insurance mechanisms and the secondary market) are the two major drivings in the development of housing finance.Finally, compared to the reality of Chinese housing finance, propose several suggestions such as market-oriented reforms, the development of the insurance system and the secondary market, the correct treatment to financial innovation.