- Description
XECO 212 Week 5 A New House – Risks and Benefits
The government and the fiscal policy it implements play a large role in the housing market. In this CheckPoint, you examine how government policy has consequences for you and the decision to buy a house. This helps you consider situations and alternative decisions in your final project.
Assume for this CheckPoint that purchasing a new home is a major decision requiring a substantial financial outlay where the wrong decision has long-term financial consequences.
Evaluate the health of the housing market for the next two years by researching forecasts for mortgage rates, housing starts, and housing prices. The following websites provide a starting place for your research:
- Mortgage rates: http://www.realtor.org
- Housing starts: http://www.nahb.org
- Housing prices: http://www.mbaa.org
Submit a 250- to 350-word response addressing the following questions:
- Which government bodies influence national fiscal policies that potentially affect the housing market?
- What are some national fiscal policies that can affect mortgage rates, housing starts, and housing prices? Be sure to provide specific examples.
- What is your recommendation as to the risks and benefits of purchasing a home based on these considerations?