What causes mortgage interest rates to change when it comes to real estate?

The answer is below

Explanation:

Various reasons cause mortgage interest rates to change when it comes to real estate. These are:

1. Inflation: when there is inflation in the economy, everything increases in prices. Mortgage brokers also increase the mortgage interest rates to meet up with the price increase.

2. Strength of the economy: this is based on the belief that a good economy will lead people to demand housing properties and in turn, will increase demands for mortgages. This increase in demands will lead to rising in mortgage interest rates

3. Law of demand and supply: the higher the demand for housing properties, the higher the mortgage interest rates increases, and vice versa.

4. The nation's federal reserves: the monetary policies of a nation has a direct impact on the lending operation of a financial institution. Thereby affecting the mortgage interest rates as the capital for financing the mortgage became is affected through the monetary policy of a nation

5. The bond market: an increase in bond investment particularly mortgage bonds leads to an increase in mortgage interest rates as there will be competition to attract investors.