Why do mortgage interest rates drop when we are in deep recession?
- David B.Lv 76 months agoFavorite Answer
Like anything demand determines the cost of things. In a recession, the vast majority of people cannot afford to buy a home or upgrade from the one they own. Dropping mortgage interest rates is intended to encourage home sales as a result.
- Anonymous5 months ago
only for white people
- 5 months ago
u look lik a boogerrr
- SumDudeLv 76 months ago
To stimulate the economy. People are more apt to buy a house. People who buy houses also buy stuff for the house and hire people to move it in (or install it, like carpets). Manufacturers can then hire more people to make more stuff; and the economy improves.Source(s): Econ 101
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- Anonymous6 months ago
- 6 months ago
Liberal/feminist/progressive and she is a great choice to get in touch and she is not a big fan but she is not going anywhere near the house and get her own room and get her a conservative in a room and she is a great person to get to the point of my life that is a lot more than a conservative party in a way
- 6 months ago
I remember back in the early 80's during a bad recession and interest rates were 18%
Which was great if you were an investor but hell if you were a home buyer.
- Pat WoodenLv 76 months ago
Because people couldn't afford to buy a house otherwise.