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(4) Mortgage Rates and Home Prices (21 pts) On the internet, go to the Federal Reserve Data site (FRED) and look up weekly 30-

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(4) Mortgage Rates and Home Prices (21 pts) On the internet, go to the Federal Reserve Data site (FRED) and look up weekly 30- year mortgage rates https://fred.stlouisfed.org/series/MORTGAGE30US. The data are reported for every Thursday of a week. You can download the data into Excel. Ignore 15-years rates as well as fees and points, a) When did mortgage rates reach their historical high (month, day, year); how high was it? (2 pt) When did mortgage rates reach their historical low (month, day, year); how low was it? (2 pt) What is the current 30-year mortgage rate (April 6, 2023)? (2 pt) b) (15 pts) Now go to the Federal Reserve's data website FRED and download the "S&P/Case-Shiller 20-City Composite Home Price Index" https://fred.stlouisfed.org/series/SPCS20RSA This index provides monthly home price indices from Jan 2000 to Jan 2023. I prepared a file with monthly 30-year mortgage rates; it is posted on Brightspace. Merge these two files and a) run a simple linear regression Home Price Index = b0+ b1*Mortgage Rate either in Stata or in Excel; show the equation including t-statistics and R2. For instance like this (made-up data) with the t-statistics below the variables

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