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Economic Indicators and Their Effects
Interest rates are closely tied to various economic indicators, such as inflation rates, unemployment figures, and GDP growth. When inflation rises, central banks often respond by increasing interest rates to control spending and stabilize prices. This can create a ripple effect through real estate markets, influencing the cost of borrowing. Higher rates may deter potential homebuyers and investors, reducing demand and potentially leading to slower price appreciation in the housing sector.
Conversely, low unemployment rates and robust economic growth typically encour