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THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.72, # 1, 2015, pp. 95-102

significant at all α confidence levels. We can conclude that logging the regression

obtained better significance levels for UNEMPLOYMENT.

Conclusion

Our regression model brought us to the conclusion that interest rates are not as

statistically significant as is the unemployment to housing sales. This tells us that no

matter how low the interest rates would drop, until the unemployment rate improves,

housing sales will be stagnant. This is very evident in the current economy as

housing experts say localized warning signs of a new wave of foreclosure are likely

to be replicated across much of the United States in 2012 (Howell & Schomberg,

2012). The other main factor that could have been examined in the regression model

that might have made a difference is the average credit score of a mortgage lessee.

Upon the housing market crash, many lenders tightened criteria for mortgage

approvals and potential buyers have had much harder time obtaining loans as they

have to prove significant clean previous credit history.

References:

[1] Characteristics of Unemployment (2012).Bureau of Labor Statistics.Retrieved

March 19, 2012 from http://bls.gov/cps/lfcharacteristics.htm#unemp.

[2] Economagic. (2011). Total New Houses Sold; Interest Rates; GD. [Data Sets].

Retrieved March 18, 2012 from http://www.economagic.com/em-cgi/data.

exe/cenc25/stagemon01

[3] Foreclosure Prevention Report.(2008). Federal Housing Finance Agency.

Retrieved March 20, 2012 from

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