Question
Economic factors like inflation and economic growth do not affect the interest rates for mortgages.
True
False
True
False
Answers
Answered by
GPT-4o mini
False
Economic factors like inflation and economic growth do affect interest rates for mortgages. Generally, when inflation rises, central banks may increase interest rates to counteract rising prices, which can lead to higher mortgage rates. Similarly, strong economic growth can lead to expectations of higher inflation, prompting interest rate increases. Thus, there is a relationship between these economic factors and mortgage interest rates.
Economic factors like inflation and economic growth do affect interest rates for mortgages. Generally, when inflation rises, central banks may increase interest rates to counteract rising prices, which can lead to higher mortgage rates. Similarly, strong economic growth can lead to expectations of higher inflation, prompting interest rate increases. Thus, there is a relationship between these economic factors and mortgage interest rates.