I've been looking for the perfect home for a while.But after a few years of waiting, I finally found it.I knew I wanted a two-bedroom, two-bathroom home, with an attached garage, that was located near the river.I also knew I needed a backyard.So I put down my deposit, and in December of 2015, I walked into the Realtor's office in the River Oaks section of San Francisco.He was so happy to see me.I ...
Now playing: What to look out for when it comes to the housing market in the USA look at the top house-price bubbles in the past year:What to look at in the current house price bubble:What the experts have to say about this storySo why is this so important?
Well, there are two big reasons.
First, a huge number of people are going into and out of debt because of rising housing costs.
This means a lot of people can’t afford to live in their homes and are relying on others for help.
Secondly, it means that when prices rise, so does the demand for homes, leading to higher rents and prices for those who need to sell their homes.
For now, the government’s plans are to gradually reduce interest rates on a wide range of loans to make them more affordable, and it’s looking to start charging a higher rate for loans with higher repayments.
In other words, we can expect to see lower interest rates in the longer term.
However, as more borrowers enter the market, the longer-term effects of the interest rate cuts will become more apparent.