xeco212 week 7 due day 5

xeco212 week 7 due day 5 - there should be a lower mortgage...

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The strength of the economy as a whole can affect the marginal benefits and the marginal cost associated with purchasing a new home is as follows, if the economy is in debt then the benefits of purchasing a new home can be very low, also if the economy was down then the costs would also go down for purchasing a new home. Purchasing a new home can be both rewarding and non rewarding because with the way the economy is as of right now the price of purchasing a new home could have its own benefits such as, lower insurance for the home itself, and lower mortgage rates. The removal of the tax deduction on mortgage interest affects the housing market because with the tax deduction that means that the price of the house could go up meaning a higher mortgage. With the way the economy is as of right now I think
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Unformatted text preview: there should be a lower mortgage rate and more of a tax deduction. A tax deduction can be good for the economy because it could lower mortgage rates which in turn people would be more likely to purchase a new home. Other changes in government spending and taxes affect my decision because as I said before the lower the mortgage rate the more likely someone or even I am more likely to purchase a new home. There are risks and benefits to owning a new home. Some of the risks include high taxes and high mortgage rates but some of the benefits would be that the cheaper the price on the home and the less taxes there are the more money the economy would make because more people would be willing to purchase a new home....
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