Economic Insights — Homeowners strained to make mortgage payments in the Great Recession and the COVID pandemic, but policy responses to these two crises were very different.
The policy efforts devoted to stabilizing the mortgage market in the COVID crisis were more robust and effective than those undertaken in the Great Recession. This improved response reflects important lessons learned from the previous episode, but the unique features of the COVID crisis may have also played a role.
This article appeared in the Fourth Quarter 2021 issue of Economic Insights. Download and read the full issue.
