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It's hard to explain if I don't know which parts of that phrase caused the trouble, but I will try. That phrase tells us one of the reasons that fewer houses were sold. At the time, the rate of interest that people would have to pay on a home loan (mortgage) was gradually decreasing. This is *good* for home buyers--lower interest rates make home loans more affordable. However, because of this, buyers were waiting to see if the rate would go even lower. It's similar to watching a stock price go down. If the stock cost $100 last week and now it is $80, some people might buy, but others might wait to see if the price goes even lower. That's the behavior the argument describes.
It's hard to explain if I don't know which parts of that phrase caused the trouble, but I will try. That phrase tells us one of the reasons that fewer houses were sold. At the time, the rate of interest that people would have to pay on a home loan (mortgage) was gradually decreasing. This is *good* for home buyers--lower interest rates make home loans more affordable. However, because of this, buyers were waiting to see if the rate would go even lower. It's similar to watching a stock price go down. If the stock cost $100 last week and now it is $80, some people might buy, but others might wait to see if the price goes even lower. That's the behavior the argument describes.
Statistics : Posted by DmitryFarber • on 19 Jan 2010, 09:36 • Replies 20 • Views 37050
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