Consider a local bank whose mortgage interest rates are falling. Will this directly translate to greater demand for houses? Why or why not?(1 point)

Question

Responses

Yes, low interest rates in a particular sector (housing, automotive, etc.) always increase demand for the product.
Yes, low interest rates in a particular sector (housing, automotive, etc.) always increase demand for the product.

No, a creditor's falling interest rate translates to a greater demand for a loan from that creditor.
No, a creditor's falling interest rate translates to a greater demand for a loan from that creditor.

No, a rising interest rate will translate to a greater demand for houses. It is an indicator that the housing market is in short supply.
No, a rising interest rate will translate to a greater demand for houses. It is an indicator that the housing market is in short supply.

Yes, when a bank offers a lower interest rate on mortgages, then the demand for houses will increase.

Answer 1

Yes, when a bank offers a lower interest rate on mortgages, then the demand for houses will increase.

Lower interest rates generally make borrowing cheaper, which can encourage more people to take out mortgages. This increases the affordability of buying homes, potentially leading to greater demand for houses in the market.