Calibrating his model for the U.S. economy between 1984-2019, Marcus finds the LTV constraint is more likely to bind during and after recessions, when house prices are relatively low, while the DTI constraint mostly binds
in expansions, when interest rates, which impact debt service, are relatively high. This results in the policy implication, that a countercyclical DTI limit would be effective in curbing increases in mortgage debt, as these increases typically occur
in expansions, while a countercyclical LTV limit cannot prevent debt from rising. Countercyclical LTV limits can, however, mitigate the adverse consequences of house price slumps on credit availability by raising credit limits.