Pat B.

asked • 05/16/18

The plan to attract potential buyers by offering low-interest rate mortgages for the first two years rests on which of the following assumptions?

Community spokesperson: After a recent surge of foreclosures, many homes in our community are vacant and falling into disrepair. Property values are already falling, and, if action is not taken quickly, will fall even further when panicked residents begin to leave. Clearly the only way to prevent a snowball effect is to make it easy to purchase these vacant homes by offering potential buyers special mortgages with a low interest rate for the first two years.
The plan to attract potential buyers by offering low-interest rate mortgages for the first two years rests on which of the following assumptions?
A. Vacant homes will always fall into disrepair.
B. Homes in the area remain vacant mostly because it is too difficult for potential buyers to afford them or to get mortgages.
C. Lenders do not have enough knowledge of interest rates that they can predict what will be considered a low rate for the next two years.
D. Some home owners may stay in the community, but their property values will decrease.
E. Vacant homes will cause residents to panic.

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