1. The Housing Sector, Interest Rates and Unemployment Examined
... that 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 ... short-term interest rates play a greater role in housing demand than long-term rates. Nevertheless, despite the prevalence of different housing finance systems and rates of owner occupation, those countries wi...
- Word Count: 1565
- Approx Pages: 6
- Has Bibliography
- Grade Level: Undergraduate