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The Economics of Homebuying

This lesson provides an overview of the basics of buying a home for the first time. While studying the current housing crisis, students can use this information to understand the ramifications of the problem. Although buying a home is the largest financial decision most people make, two-thirds of American adults do buy a home. In this lesson, students examine programs that make first-time home-buying more affordable. Then they examine over time several economic factors that influence the number of homes purchased. Finally, students use a mortgage calculator to find out how the size of the down payment, length of the loan, and interest rate affect the cost of the loan.

Published by National Council on Economic Education in 2008

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Curriculum Information For Resource

Snapshot
Grade Level(s):10, 11, 12
Curriculum Areas:Economics
Themes/Keywords: Housing
Interest rate
Mortgage




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