Why do interest rates on home mortgages increase when demand for housing increases?
ABanks want to decrease incentives to buyers when demand is high.
BWhen the demand for mortgages increases, lenders can increase the cost of borrowing money.
CInterest rates do not move in response to consumers’ actions.
DWhen demand is high, interest rates decrease.
ABanks want to decrease incentives to buyers when demand is high.
BWhen the demand for mortgages increases, lenders can increase the cost of borrowing money.
CInterest rates do not move in response to consumers’ actions.
DWhen demand is high, interest rates decrease.