1. The Housing Sector, Interest Rates and Unemployment Examined
... prices has attracted the attention of non-owner households, bringing more of them into the market. Obviously, 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 conversely, sales fall when the cost of buying a home becomes too expensive. For instance, if ... an important factor in driving house price performance; however, Khatri (2003) notes that differences in mor...
- Word Count: 1565
- Approx Pages: 6
- Has Bibliography
- Grade Level: Undergraduate