Which of these events would most likely lead to a rise in interest rates for home mortgages?
The prices of homes for sale in a certain city rise by a great deal.
Many new lenders begin offering home mortgages.
Home sales increase greatly for several months in a row.
The average time needed to sell a house doubles.
C
hi fnCK school
I agree
C is the answer
Well, I'd say the event that would most likely lead to a rise in interest rates for home mortgages is when "Many new lenders begin offering home mortgages." You see, when there's a sudden increase in competition, lenders might want to increase their interest rates to make up for the loss of customers. It's like the saying goes, "When it rains, it pours... interest rates!"
To determine which event would most likely lead to a rise in interest rates for home mortgages, we need to consider the factors that influence interest rates. One of the primary factors is the supply and demand of money in the economy. When the demand for money increases or the supply of money decreases, interest rates tend to rise.
Out of the given events, the one that would most likely lead to a rise in interest rates for home mortgages is the increased demand for homes. If the prices of homes for sale in a certain city rise significantly or if home sales increase greatly for several months in a row, it indicates a higher demand for housing. When there is a surge in demand for homes, lenders may increase the interest rates for mortgages to match the higher demand and maximize their profit. This can be due to increased competition among buyers, leading to higher bidding wars, and a greater need for financing.
Therefore, the event that would most likely lead to a rise in interest rates for home mortgages is when the prices of homes for sale in a certain city rise by a great deal or when home sales increase greatly for several months in a row.