The relationship between real estate markets and interest rates is:

Question

Quizplus · Accepted Answer

Real estate markets and interest rates have an inverse relationship. When interest rates are high, mortgage rates also become high, making it more difficult and expensive to obtain a mortgage. As a result, the demand for real estate goes down, and so do the prices. On the other hand, when interest rates are low, mortgage rates also become low, making it easier and cheaper to obtain a mortgage. This increases the demand for real estate, leading to higher prices. Therefore, higher interest rates drive down real estate prices and vice versa.

The Relationship Between Real Estate Markets and Interest Rates Is