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Problem
How did extremely low interest rates in 2004 and 2005, then rapidly rising rates in 2006 impact home sales? (Hint: Try to find some data on the web that correlates unit home sales with interest rates).
What happens to home prices as interest rates fluctuate? Have home prices recovered since rates have fallen since then to record lows in late 2010 and beyond?
What happens to DOM (Days on the Market) - or how long it takes to sell the average home - as rates go up and down?
Review these questions and determine what the historic relationship between interest rates and home ownership was, and what it appears to be in the current housing slump.
Instructions:
Your initial post should be at least 250 words.
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