Past interest rates can affect the price of a home.

Question

Quizplus · Accepted Answer

When interest rates are low, it is more affordable to purchase a home because the cost of borrowing money is reduced. As a result, there tends to be more demand for homes, which can drive up prices. Conversely, when interest rates are high, borrowing money becomes more expensive, causing demand for homes to decrease, which can lead to lower prices. Therefore, past interest rates can have an impact on the current price of a home.

Past Interest Rates Can Affect the Price of a Home