Rising Seas Threaten an American Institution: The 30-Year Mortgage
A recent article in the New York Times highlights the impact that climate change is having on American homeownership-- specifically, the risks of sea level rise and flooding are making banks warier of lending to homebuyers in vulnerable areas. Climate change risks have already begun to push down home prices in coastal areas and along rivers. Furthermore, banks are trying to get loans off of their books by selling to government-backed buyers like Fannie Mae, meaning that taxpayers would be on the hook if the loans were to fail.
“Conventional mortgages have survived many financial crises, but they may not survive the climate crisis,” said Jesse Keenan, an associate professor at Tulane University, in the article.