RDP 2016-04: Housing Prices, Mortgage Interest Rates and the Rising Share of Capital Income in the United States Appendix B: Variable Correlations

The correlations between the key variables are summarised in Table B1.

Table B1: State-level Correlation Matrix
  Inline Equation Inline Equation Inline Equation Interest rate Real interest rate ΔCPI ΔHP ΔGDP ΔPop
Inline Equation 1.00                
Inline Equation 0.38 1.00              
Inline Equation 0.27 0.32 1.00            
Interest rate −0.23 −0.78 −0.18 1.00          
Real interest rate −0.05 −0.32 0.11 0.40 1.00        
ΔCPI −0.17 −0.43 −0.27 0.56 −0.54 1.00      
ΔHP −0.17 −0.25 −0.25 0.24 −0.19 0.39 1.00    
ΔGDP −0.07 −0.11 −0.04 0.03 −0.06 0.08 0.43 1.00  
ΔPop 0.12 −0.01 −0.02 0.02 −0.07 0.08 0.24 0.32 1.00

Sources: Bureau of Economic Analysis; Carrillo et al (2014); Federal Housing Finance Agency