When the interest rate attainable on mortgage loans is low, housing starts are relatively high because of increased affordability.
More individuals enter into the housing market when the lowering of interest rates occur. Governments can affect housing prices by lowing the interest rate, less amounts to repay and a higher number of potential buyers, especially the first time purchasers.
High interest rates increase the cost on the ability to buy a house or a car.
how interest rates affect the sa economy
It cause interest rates to rise.
interest rates reflect the funding cost. for the the company the higher the rates the higher the borrowing cost.
When interest rates rise, bonds lose value; when interest rates fall, bonds become more attractive.
Based on today's economy, the interest rate would generally be expected to be very low compared to the past. According to previous searches, the housing rates are somewhere around 3%.
if an interest rate is high, it is likely that inflation is also high. Generally, one doesn't affect the other so much as measure the other.
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explain how do intrest rates and inflation affect the real estate
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Commercial mortgages interest rates are different from residential mortgages, commercial mortgages are taxed a little different and these taxes affect the interest rates to increase.