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, ... Ireland and the UK the EU since 1997. Interest rates are an important factor in driving house price performance; however, Khatri (2003) notes that differences in mortgage market structures mean that for some countries, short-term interest rates play a greater role in housing demand t...
- Word Count: 1565
- Approx Pages: 6
- Has Bibliography
- Grade Level: Undergraduate