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Solved: Housing Affordability The National Association of
Chapter 9, Problem 15AYU(choose chapter or problem)
Housing Affordability The National Association of Home Builders in conjunction with Wells Fargo compiles a housing affordability index called the Housing Opportunity Index (HOI).The index represents the proportion of homes considered to be affordable according to standard mortgage practices for individuals earning the national median income.
(a) Estimate the HOI in the first quarter of 1999 (Ql/99).
(b) What was the lowest value of the HOI (meaning homes were least affordable)? In what year did this occur?
(c) What was the highest value of the HOI? In what year did this occur?
(d) Determine the percentage decrease in the HOI from the first quarter of 1999 to the third quarter of 2006.
(e) Determine the percentage increase in the HOI from its low to its high.
Questions & Answers
QUESTION:
Housing Affordability The National Association of Home Builders in conjunction with Wells Fargo compiles a housing affordability index called the Housing Opportunity Index (HOI).The index represents the proportion of homes considered to be affordable according to standard mortgage practices for individuals earning the national median income.
(a) Estimate the HOI in the first quarter of 1999 (Ql/99).
(b) What was the lowest value of the HOI (meaning homes were least affordable)? In what year did this occur?
(c) What was the highest value of the HOI? In what year did this occur?
(d) Determine the percentage decrease in the HOI from the first quarter of 1999 to the third quarter of 2006.
(e) Determine the percentage increase in the HOI from its low to its high.
ANSWER:Step 1 of 2
