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How that easier access to mortgage credit has significant effects on house prices by using exogenous changes in the conforming loan limit as an instrument for easier credit supply and cheaper cost of credit. We find that houses that become eligible for financing with a conforming loan show an increase in house value of 1.1 dollars per square foot (for an average price per square foot of 224 dollars) and higher overall house prices controlling for a rich set of house characteristics. In addition,.
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