Housing increased substantially as low interest rates

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In early 2000s the demand for housing increased substantially as low interest rates increased the number of people who could afford homes.

a) What was the likely effect of this on housing prices?

b) In 2005, mortagagerate began increasing on housing prices?

c) In a period increasing demand for housing, would you expect housing prices to rise more miami suburbs, which had room for expansion for fairly loose laws about subdivisons, or in a city such as San Francsico, which had limited land and tight subdivison restrictions?

Reference no: EM131194556

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