Which of the following would be likely to reduce the demand for residential housing?
A) High prices for residential housing units.
B) High mortgage interest rates.
C) High prices for lumber and other construction materials.
D) Low unemployment rates.
E) Low prices for residential housing units.

Question

Quizplus · Accepted Answer

High mortgage interest rates would likely reduce the demand for residential housing because it increases the cost of borrowing money to buy a house, making mortgages less affordable for potential buyers.

Which of the Following Would Be Likely to Reduce the Demand