Market Conditions

Market Conditions. Understanding supply, demand, interest rates, and price movements is very important. For example, if interest rates for mortgages are low, many buyers will be buying homes, supply of available homes for sale will decrease, and prices of remaining homes will go up. On the other hand, when interest rates for mortgages are high, most buyers will not be able to afford to buy homes. This will result in low demand and high supply of homes for sale sitting on the market. Prices of homes will drop in this case.