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Relationship between long-term interest rates-house price

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Reference no: EM132166737

i. While the typical mortgage in Australia is a short-term variable rate, it was noted that there appeared to be a stronger relationship between long-term interest rates and house prices. What was the reason for this?

ii. Non-price factors also influence the effective cost of borrowing and are a factor in the current market in Australia. What do we mean by this?

Reference no: EM132166737

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