Leah Kelvin
Active member
Interest rates are a big driver of the housing market. For example, low interest directly make mortgages cheaper and so more affordable for those borrowing to buy a home which increases demand; lower monthly payments also raise housing affordability and draw in purchasers. Refinancing activity jumps due to it freeing up money people have available each month that can then be spent elsewhere on goods or services thus stimulating consumer demand throughout various sectors such as retailing etcetera; this is supported by the fact that builders should take note too – investors looking at real estate often follow interest rates where there are construction projects being planned because they know with lower costs involved it becomes easier financially viable.
