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  • 1. How does median income affect home sales? Home prices?
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  • 2. Explain the relationship between interest rates and: The affordability index, the prices of new homes and new homes sold.
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  • 3. Why do interest rates have this effect on home sales?
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  • 4. How do recessions affect home sales? Why?
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  • 5. Why did both the number of new homes sold and the prices of new homes sold rise in 1996 and 1997?
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  • 6. Compare the number of 25-34-year-olds with the number of 60-69-year-olds in 1989. How will this ratio change in the 2020s? How do you think these changing ratios will affect the housing market?
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