1. The Housing Sector, Interest Rates and Unemployment Examined
In contrast, although new home inventory is currently rising, it remains low relative to current sales. The current supply of new homes on the market is 3.9 months; among the lowest ever. ... 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. ... 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 that th...
- Word Count: 1565
- Approx Pages: 6
- Has Bibliography
- Grade Level: Undergraduate