week 7 assignment - for or if a buyer can qualify at all....

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
The higher the rate of credit card interest or mortgage interest, the less cash we have . The higher the rate of savings interest the more money we have. If something will cost far more than it is worth because you do not have the money to buy it, then you should wait until you can afford it and stay out of debt. Very low interest may tempt many to go into debt to buy the item now, but high interest is just plain ridiculous to pay. Interest rates dictate the amount a buyer can qualify
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: for or if a buyer can qualify at all. Lower interest rates allow more people to buy and more people to purchase more expensive homes. The negative about low interest rates is that it has a tendency to push prices of homes higher because there are more buyers. When supply is lower (caused by lower interest rates because there is more buyers) home prices tend to go up. When supplies are higher (caused by higher interest rates) home prices tend to stay the same or go down....
View Full Document

Ask a homework question - tutors are online