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Lower interest rates don’t necessarily improve housing affordability


Abstract: The direct impact of higher mortgage rates on housing affordability has received much attention. We emphasize that housing affordability not only depends on mortgage rates but also on house prices, which have competing effects.

Keywords: inflation; monetary policy; consumer finance; real estate;

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File(s): File format is text/html https://www.dallasfed.org/research/economics/2024/0402
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Provider: Federal Reserve Bank of Dallas

Source: Dallas Fed Economics

Publication Date: 2024-04-02