Advanced Placement (AP) College

what causes mortgage interest rates to change when it comes to real estate?

Answers

Answer 1

Answer:

The answer is below

Explanation:

Various reasons cause mortgage interest rates to change when it comes to real estate. These are:

1. Inflation: when there is inflation in the economy, everything increases in prices. Mortgage brokers also increase the mortgage interest rates to meet up with the price increase.

2. Strength of the economy: this is based on the belief that a good economy will lead people to demand housing properties and in turn, will increase demands for mortgages. This increase in demands will lead to rising in mortgage interest rates

3. Law of demand and supply: the higher the demand for housing properties, the higher the mortgage interest rates increases, and vice versa.

4. The nation's federal reserves: the monetary policies of a nation has a direct impact on the lending operation of a financial institution. Thereby affecting the mortgage interest rates as the capital for financing the mortgage became is affected through the monetary policy of a nation

5. The bond market: an increase in bond investment particularly mortgage bonds leads to an increase in mortgage interest rates as there will be competition to attract investors.

Related Questions

You are a real estate agent working for HighMax Homes. What is the primary purpose of the document shown?

Answers

Answer: To explain what a home inspection does and does not include.

Explanation:

The document in question is a Home Inspection Agreement.

The purpose of this document is to inform the parties involved of the purpose of the home insurance agreement as well as its limits or rather what it does not address.

Some of the things it addresses include: uncovering major visible repair problems and safety issues. Some of the limits are: the inspection is visual which means that some repair issues may escape the inspection.

Other Questions
Why was the Battle of Bunker Hill in 1775 considered a victory for the Continental army? The Continental army maintained its control of Bunker Hill. The British army sustained heavy casualties. The Continental army forced British soldiers to retreat to Boston. The British army was forced to use most of its ammunition. Find the 18h term of the arithmetic sequence whose common difference is d=4 and whose first term is a, =3. Jared measured a house and its lot and made a scale drawing. The scale of the drawing was 5 millimeters : 3 meters. The actual length of the front lawn is 69 meters. How long is the lawn in the drawing? Part A: You have $0.80 in your backpack in dimes and quarters. Let x represent the number of dimes and y represent the number of quarters. Write an equation in standard form that represents the situation ____x+____ y=____ Part B: You have $0.80 in your backpack in dimes and quarters. Let x represent the number of dimes and y represent the number of quarters. If you have 2 quarters in your backpack, how many dimes do you have? ______ What did Harry Hess discover that helped prove that tectonic plates are moving? Please help, i have attachment file I need help with math Fill in the blank with the Spanish word that best completes the following sentence. Una manzana es O una carne o una bebida o una fruta o una verdura Mark this and retum Save and Exit 1.During parkour, a person leaps at a wall and performs a flip. What must they do to changedirections?6 PLEASE HELP IN ONE MINUTE WILL MARK BRAINLIST 3.What is the meaning of *.VBP. which one is ittt? help please:) What is the land area is located around the Rio de la Plata? *pampasGran ChacoPatagoniaAmazon Rainforest Mike bakes 24 cookies for some friends. He gives the same number of cookies to 2 friends. How many cookies c does each friend receive? Write an equation to represent the number of cookies each friend receives. -6/11 multiplied by (-1/6) in fraction form FIRST TO ANSWER GET BRAINLIESTThis is the graph of a __function.The y-intercept of the graph is the function value y=The smallest positive x-intercept of the graph is located at x=The greatest value of y is y=___, and it occurs when x=For x between x = and 2, the function value y ___ 0 What is the counterclaim in the passage?Plz help HELP MEEEE!!!!!!!!!!!!!!!!!!!! I will give brainliest to whoever answers first. Citizens of the United States are obligated to vote/ pay taxes/ do jury duty on money they earn and purchases they make. Also, young men and women/ men/ women must register their names with the Selective Service System once they turn 18. If m_1=37, what is m_4?