1. The Housing Sector, Interest Rates and Unemployment Examined
... increase in supply, creating a very tight residential real estate market that has driven prices upwards. Because the increase in prices was driven by demand stimulated by the reduced cost of mortgages, this rise should not be considered to be a signal of overvaluation in the housing market. In contrast ... the fundamentals of supply and demand, with price as the equilibrating force, are well at work in the housing market. Measuring housing affordability by the ratio of mortgage payments to income, home sales naturally increase as the cost of buying a home becomes "cheaper", and conversel...
- Word Count: 1565
- Approx Pages: 6
- Has Bibliography
- Grade Level: Undergraduate