why do interest rates on home mortgages increase when demand for housing increases?
4 answers
Banks charge higher rates because they can.
ms sue
i'm pretty sure there is a better explanation than that
No, Ms. Sue's explanation was fine. Simple but gives the correct answer. "B) When the demand for mortgages increases, lenders can increase the cost of borrowing money." Ms. Sue literally said the same thing, just worded differently and without part A of the sentence.