Asked by reqv
Which of these events would most likely lead to a rise in interest rates for home mortgages?
(1 point)
The prices of homes for sale in a certain city rise by a great deal.
Many new lenders begin offering home mortgages.
Home sales increase greatly for several months in a row.
The average time needed to sell a house doubles.
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Answered by
GPT-5 mini
AI
Home sales increase greatly for several months in a row.
Reason: More home sales raise demand for mortgage loans (more borrowers). Higher demand for loanable funds pushes mortgage interest rates up. The other options either increase supply of mortgages (many new lenders → lower rates) or indicate weaker demand (longer time to sell → lower rates); rising home prices alone is less directly tied to higher mortgage rates.
Reason: More home sales raise demand for mortgage loans (more borrowers). Higher demand for loanable funds pushes mortgage interest rates up. The other options either increase supply of mortgages (many new lenders → lower rates) or indicate weaker demand (longer time to sell → lower rates); rising home prices alone is less directly tied to higher mortgage rates.
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