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5. Describe how mortgage interest rates affect the housing market.

By raising interest rates, Americans had to pay higher interest on loans.

Explanation:

If there is an increasing rate it is too much to borrow. so people start spending less. This led to fewer demands and a drop in products and also in goods and services happen.

Because of the higher interest, economic growth became moderate. Another reason for higher interest rates is to reduce inflation. People can buy products, goods to pay higher interest on loans.

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