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2580 | 2580 | "source": [ |
2581 | 2581 | "The solid blue line represents the monthly average `psft`, while the light blue area shows the range of values. We can see that the average `psft` has been about 120$ across the years. The range has varied between +/- 20%. There are sharp fluctuations in the plot. This can arise from inherent market conditions. But , Fluctuations can also arise if the number of data points in a given period is small. An outlier, a very expensive house for instance, can push the average out. We should explore both these aspects. \n", |
2582 | 2582 | "\n", |
2583 | | - " \n", |
| 2583 | + "\n", |
| 2584 | + "\n", |
| 2585 | + "\n", |
2584 | 2586 | "*Figure: Mortgage interest Rates : Source image downloaded from FRED*\n", |
2585 | 2587 | "\n", |
2586 | 2588 | "First, lets explore market conditions. The mortgage interest rates in the same period has been constantly reducing. From about 6.5% at the start of 2006 the intrest rates have reduced to 4% in 2010. Lower intrest rates make the cost of owning a home cheaper. However the peak of either graphs graph do-not correspond. We can conclude low interest rates have not inflated the prices our the supply of housing.\n", |
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