1. The Housing Sector, Interest Rates and Unemployment Examined
... created this rapid appreciation of home 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 ... over the period 1975 to 2002. The Economist concludes that house prices continued to climb despite a stock market crash, global economic slowdown and the Iraq war, and have fueled the belief t...
- Word Count: 1565
- Approx Pages: 6
- Has Bibliography
- Grade Level: Undergraduate