A Study Prepared for the National Association of Realtors Estimates

Short Answer

A study prepared for the National Association of Realtors estimates that the number of housing starts per year over the next 5 yr will be million units, where r (percent) is the mortgage rate. Use differentials to estimate the decrease in the number of housing starts when the mortgage rate is increased from 17% to 17.8%. Round to the nearest unit. Give your answer as a number without the units.