A study on assessing the impact of interest rates on mortgage lending trends
Author(s): R Jeyalakshmi and Jeevanandham D
Abstract: In order to better understand how interest rate fluctuations affect borrower behavior, loan demand, and housing market dynamics, this research examines the link between interest rates and mortgage lending patterns. The study focusses on various economic cycles and how central bank policies influence interest rate movements, looking at both short- and long-term effects. This study attempts to pinpoint significant patterns and trends that illustrate how sensitive mortgage lending is to changes in interest rates through the analysis of actual data and case studies from several economies. The results indicate that while higher interest rates lead to decreased loan activity and affordability issues for prospective homeowners, lower interest rates considerably increase housing demand and mortgage origination. The study also emphasizes the wider ramifications for financial institutions, borrowers, and the real estate markets in addition to how changes in interest rates impact refinancing activity.
R Jeyalakshmi, Jeevanandham D. A study on assessing the impact of interest rates on mortgage lending trends. Int J Multidiscip Trends 2024;6(12):113-117. DOI: 10.22271/multi.2024.v6.i12b.545
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