Among the most important demand side factors explaining homes prices would be the

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The level of mortgage interest rates is a significant demand side factor that affects home prices. When mortgage interest rates are low, it becomes easier and cheaper for people to borrow money to buy homes, which tends to increase demand for housing and push up home prices. On the other hand, high mortgage interest rates make it more difficult and expensive to borrow, leading to lower demand for housing and lower home prices.

Among the Most Important Demand Side Factors Explaining Homes Prices