Year US House Price Index (Freddie Mac) 30-year fixed mortgage rate (average)

1971 33,50 7,55

1972 35,94 7,38

1973 39,45 8,04

1974 42,58 9,19

1975 44,90 9,05

1976 48,55 8,87

1977 55,09 8,85

1978 62,62 9,64

1979 69,42 11,20

1980 74,36 13,74

1981 78,38 16,63

1982 79,30 16,04

1983 82,44 13,24

1984 86,31 13,88

1985 91,10 12,43

1986 97,93 10,19

1987 104,00 10,21

1988 110,73 10,34

1989 118,15 10,32

1990 119,32 10,13

1991 123,00 9,25

1992 125,89 8,39

1993 128,94 7,31

1994 131,22 8,38

1995 137,46 7,93

1996 142,00 7,81

1997 148,97 7,60

1998 156,53 6,94

1999 164,98 7,44

2000 177,44 8,05

2001 190,70 6,97

2002 204,33 6,54

2003 219,98 5,83

2004 245,72 5,84

2005 277,24 5,87

2006 294,50 6,41

2007 295,25 6,34

The ACFs of the time series in levels (P and R) exhibit (STRONG OR WEAK?)autocorrelations that decay slowly towards zero.

The PACFs of the time series in levels (P and R) exhibit statistically signicant partial autocorrelations of order (1,2 and 3; 1; 1 and 2)???

Both the ACFs and PACFs of the time series of changes in prices and rates exhibit much (STRONGER/ WEAKER) autocorrelation.

The ACF of changes in prices shows (NO/ ONE YEAr) ??autocorrelation, which means we (WILL/ WILL NOT??)be able

to exploit time dependence in yearly price growth for forecasting purposes.

The ACF of changes in interest shows (ALMOST NO/ONE YEAR) statistically signicant autocorrelation, which means we (WILL NOT/ WILL)?? be able to exploit time dependence in yearly interest growth for forecasting purposes.

please help! the brackets include two answers( one should be right)