ECO 212 Week 7 New House Economy CheckPoint

ECO 212 Week 7 New House Economy CheckPoint - 1) Explain...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1) Explain how the strength of the economy as a whole could affect the marginal benefits and the marginal costs associated with a decision to purchase a home in your area. People tend to stop spending as much when the economy is down. When sales go down, the real-estate prices will go down in order to try to compensate for the decrease in sales so they can sell houses. The best time to buy a home is when the economy is at a low. A fixed loan is the best for a situation like this, because the loans during this time can be tricked and even have interest rates that will fluctuate which more than likely means increase. It is important for first time home buyers to try and balance their rates with their income. If a first time home buyer can balance their payments good enough to be able to pay their lower the amount of time it takes them to pay the loan off, then the lower their interest rates will be which means the less money they have to pay on the house. However, the amount and length of a loan depends on the credit score of the buyers, so when some first time home buyers may be able to buy a house on a 15 year loan it may take another first time buyer 20 years or more. When the economy is down the prices may be down however the rates are up so home buyers are really not saving money like they think. The biggest factors first time home buyers have to remember is how the economy is, the size and location of the property, their income and their credit score. 2) Identify area-specific issues influencing the home market, such as local employment issues, seasonal trends and/or housing saturation. The housing market in my town or state was down for a while due to
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This document was uploaded on 04/17/2011.

Page1 / 3

ECO 212 Week 7 New House Economy CheckPoint - 1) Explain...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online