A rise in interest rates will cause the market value of existing mortgages to:

Name: A rise in interest rates will cause the market value of existing mortgages to:
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Question

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When interest rates rise, the market value of existing mortgages falls. This is because higher interest rates mean higher borrowing costs for potential homebuyers, which reduces the amount they're willing to pay for a given property. As a result, the market value of existing mortgages declines along with the overall demand for housing.

A Rise in Interest Rates Will Cause the Market Value