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Bubble, bubble, toil, and trouble

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Figure

Figure 1 compares the evolution of  the CPI-OER since its inception in 1983  with that of home prices
Figure 3 suggests that housing prices might respond  to changes in mortgage rates and income levels
TaBLE 2 Regression results, 1980–2006 Dependent	variable:	HOME	PRICE 	 1	 2	 3 AFFORDABILITY INDEX  13.009  10.596  8.709 (0.000)***  (0.009)***  INCOME  1.812  2.023 (0.044)**  UNEMPLOYMENT  –2.241  –0.747  (0.159)  (0.687) CONSTRUCTION COST  0.073  0.071

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