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The market is being questioned after new homes sales declined in November along with the median price of new homes.
The interest rates have been considerably low for much longer time than projected and co-director of the Center for Economic Policy Research, Dean Baker projects a rise of one percentage point this year, this should drive down the average price of homes nationwide. Doug Duncan, who is chief economist for the Mortgage Bankers Association, claimed there were only two or three quarters where national average home prices fell, but it never occurred during the entire year. He also referred to 1983 when interest rates jumped 2 percentage points, and the number of homes sold nose dived, but average prices of homes increased regardless...
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