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Explain How Current Interest Rates Can Affect the Price of a Home

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Explain how current interest rates can affect the price of a home.


Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary based on income level or profits.

Interest Rate

The cost, represented as a percentage of the principal, incurred by a borrower for the utilization of assets from a lender.

ROE

Return on Equity, a measure of a corporation's profitability by calculating how much profit a company generates with the money shareholders have invested.

Real Income

The purchasing power of an individual's or household's income, accounting for inflation.

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