Mortgage prices would normally be expected to ____ when the interest rates ____, holding other factors constant.

Question

Quizplus · Accepted Answer

When interest rates decrease, mortgage prices increase because it becomes more affordable for people to borrow money, which increases the demand for homes and thus drives up housing prices. Conversely, when interest rates increase, mortgage prices decrease because borrowing money becomes more expensive and demand for homes tends to decrease, causing housing prices to fall.

Mortgage Prices Would Normally Be Expected to ____ When the Interest