An article in the Wall Street Journal on the housing market stated, “Steady job growth, rising wages and low interest rates have helped prop up housing demand.” Why do low interest rates increase the...

An article in the Wall Street Journal on the housing market

stated, “Steady job growth, rising wages and low interest

rates have helped prop up housing demand.” Why do low

interest rates increase the demand for housing? In which

component of aggregate expenditure does the Bureau of

Economic Analysis include purchases of new houses?

Source: Steven Russolillo, “Why the Housing Market Is Getting

Stronger,” Wall Street Journal, May 22, 2016.