Interest Rates and Mortgage Markets

Interest rates are the cost of borrowing money, expressed as a percentage of the loan amount. In mortgage markets, these rates affect how much homebuyers pay monthly to lenders for home loans. Lower interest rates generally lead to lower monthly payments and make homes more affordable, while higher rates increase costs, potentially cooling demand for housing. The rates are influenced by factors like economic conditions, inflation, and central bank policies. A competitive mortgage market also helps consumers find better deals, impacting overall affordability and access to homeownership.