Macroeconomics and the Housing Market Cause and Effect Essay by Jay Writtings LLC

Macroeconomics and the Housing Market
An examination of the macroeconmic factors influencing the weak performance of the housing market in the United States.
# 117075 | 1,338 words | 2 sources | MLA | 2009 | US
Published on Nov 12, 2009 in Economics (Macro)

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This paper explores data and presents a forecast for the housing market in the United States. It suggests that the housing market is underperforming and attributes the weak performance to a number of factors, a majority of which stem from macroeconomic factors. The paper also discusses the decisions which have been made by policy makers and how they have directly influenced the housing industry and also the capacity of individuals to purchase homes.

From the Paper:

"The decrease in the Gross Domestic Product and Consumer Price Index is both a cause and effect of the burst of the housing market. Our projections consider that the GDP and CPI are adequate measurements for the future behavior of the economy, and thus our projection that the housing market will continue to fall, as the above mentioned problems, further exacerbated by the unemployment rate, are not decreasing at a noticeable rate. However, there have been recent moves to help restore liquidity, largely enacted by private lenders, who having capitalized upon the burst, are now looking to profit upon the rebuilding of the market. Fannie Mae and Freddie Mac are examples of this, which are government-sponsored enterprises (GSEs) that buy loans and repackage them for sale in the secondary market. Regulators have temporarily raised the growth caps on the GSEs' loan portfolios, which has greatly increased the size of mortgages that conform to GSE guidelines, and on Mar. 19 freed up at least $200 billion in additional capital the GSEs can use to buy mortgages and mortgage-backed securities."

Sample of Sources Used:

  • Fisher, Daniel. "Chemical Balance." Forbes. 181.7, pp. 60-62. 2008.
  • Cooper, James C. "Laying the Foundation for Recovery." Business Week. 1078.14, p. 14. 2008.

Cite this Cause and Effect Essay:

APA Format

Macroeconomics and the Housing Market (2009, November 12) Retrieved October 03, 2022, from

MLA Format

"Macroeconomics and the Housing Market" 12 November 2009. Web. 03 October. 2022. <>