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Reply to "Bidding war seems haul to the end and interest rates are dropping "
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[quote=Anonymous]Macroeconomist here. The economy is recovering. So both interest rates and house prices are likely to be higher next year. Just fyi, the negative relationship between interest rates and house prices holds ONLY if everything else (e.g. income growth) is constant. In this case, higher income growth is likely to drive up both variables. Hope this helps. [/quote]
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