The correct answer is: (3) The average time needed to sell a house doubles.
When the average time needed to sell a house doubles, it suggests that the demand for homes is decreasing. This decrease in demand can lead to a decrease in home prices, which may prompt lenders to raise interest rates to compensate for the potential decrease in returns on mortgage loans.
Which of these events would most likely lead to a rise in interest rates for home mortgages?
(1 point)
Responses
The prices of homes for sale in a certain city rise by a great deal.
The prices of homes for sale in a certain city rise by a great deal.
Many new lenders begin offering home mortgages.
Many new lenders begin offering home mortgages.
Home sales increase greatly for several months in a row.
Home sales increase greatly for several months in a row.
The average time needed to sell a house doubles.
1 answer
2 answers