Finance
When interest rates rise, the demand for mortgage loans generally:
AIncreases because buyers want to lock in rates
BDecreases because borrowing becomes more expensive✓ Correct
CRemains unchanged because home prices adjust equally
DIncreases because refinancing becomes more attractive
Explanation
When interest rates rise, monthly mortgage payments increase, making homeownership less affordable. This reduces demand for mortgage loans, which typically also leads to slower home sales and downward pressure on prices.
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