Question

19. Changes in housing interest rate is a
(a) a leading indicator
(b) a coincident indicator
(c) a lagging indicator
(d) a cyclical indicator​

Answer 1

Answer:

19. Changes in housing interest rate is a

(a) a leading indicator

(b) a coincident indicator

(c) a lagging indicator

(d) a cyclical indicator

Answer 2

Answer:

c) a lagging indicator

because ....lagging indicator provides a broad gauge of the movement of single-family home prices, regionally and nationally.

Home prices indexes closely watched by economists and investors include data by the following entities: S&P/Case-Shiller, CoreLogic, Census Bureau, Federal Housing Finance Agency and National Association of Realtors.

Since the housing market collapse, home prices have declined an average of 34 percent, according to the S&P/Case-Shiller Housing Price Index. Generally, a drop in home prices might signal an oversupply of homes or the need for a market correction to adjust inflated home values. Falling home prices have a negative affect on homeowners’ wealth and employment in construction, manufacturing and other sectors of the economy.