This preview shows page 1. Sign up to view the full content.
Unformatted text preview: much greater supply and fewer buyers causing prices to drop of maintain. Low interest rates affect purchasing habits as well. When interest rates are low, it is more enticing for businesses and consumers to take out loans to finance large purchases. When consumers and businesses have easier access to credit, they spend more money. In most cases, low mortgage rates equate to more home purchases, and low credit card rates cause people to spend more on credit. However, low interest rates generally mean higher prices because there are more buyers and limited supply....
View Full Document
- Spring '11