1. The Housing Sector, Interest Rates and Unemployment Examined
... 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 a ... the year. Khatri (2003) analyzes real house price movements across 14 out of the 15 European Union (EU) nations over the five year period 1997-2002 in relation to variations in unemployment, real interest rate...
- Word Count: 1565
- Approx Pages: 6
- Has Bibliography
- Grade Level: Undergraduate