7.2 U.S. Housing Market Quiz

Use this link to answer questions. Read the article:

https://moneywise.com/real-estate/household-income-to-buy-a-home

Google if you do not know: What does median mean in the context of the article?

• middle value in a set of numbers

• average value of a set of numbers

• highest value in a set of numbers

• lowest value in a set of numbers

• middle of the road

What is the median of this set of numbers?

1,3,3,6,7,8,9

• 3

• 6

• 7

• 8

• 5.3

Answer explanation

1,3,3, 6, 7,8,9

6 is in the middle

The average is (1+3+3+6+7+8+9)/7 = 5.3

Can the median of a set of numbers be higher than the average?

• no

• yes

Answer explanation

1,3,3, 6, 7,8,9

6 is in the middle

The average is (1+3+3+6+7+8+9)/7 = 5.3

The median is higher than the average.

It is often near the average but it can be higher or lower if there are a lot of high or low numbers.

The article states the median income of $107,000 is up 22%. What was the previous median income?

If previous income is x, then 1.22 · x = 107,000 (this equation shows a 22% increase of x)
Solve for x.

• 87,704

• 67,124

• 80,586

• 78,900

• 62,109

Answer explanation

1.22 · x = 107,000

x = 107,000/1.22 = $87.704

How are well-off home buyers able to have their bids accepted over those with less money?

• by offering larger down payments or paying cash

• by paying double the asking price

• by paying less than the asking price

• by showing up in fancy cars

What was the actual median household income of all people in the U.S. in 2022?

• 2,500

• 88,000

• 75,000

• 107,000

• 65,000

Why is the actual median household income of all people in the U.S. in 2022 so much lower than $107,000?

• The median of $107,000 includes more people

• Homeowners tend to have more money

• Homeowners tend to have less money

• The number of all people is less than the number of homeowners

Home prices are ​ (a)   higher now than before the pandemic homebuying boom, and ​ (b)   mortgage rates have made the divide even bigger by increasing monthly payments. Rent prices are also going up. The national median price for a one-bedroom rental will cost around ​ (c)   each month.

• 40%
• 20%
• 22%
• increasing
• decreasing
• $1,500
• $2,500
• $2,850

Answer explanation

1.22 · x = 107,000

x = 107,000/1.22 = $87.704

What is the median monthly mortgage payment across the U.S. in the four weeks ending Jan. 14?

• $2,000

• $2,500

• $2,200

• $2,800

What is the interest rate for mortgages across the U.S. in the article?

• 6.6%

• 20%
• 7%

• 3.5%

• 2.5%