California Real Estate Practice Exam

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Master the California Real Estate Exam with our comprehensive practice quiz. Get expert tips, detailed content review, and insider strategies to pass on your first try.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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Rising mortgage interest rates will tend to

Increase property values
Lower property values
Stabilize property values
Have no effect on property values

The correct answer is: Lower property values

Rising mortgage interest rates will lead to higher overall borrowing costs for potential buyers, making it more difficult for them to afford homes and reducing demand. This decrease in demand can lead to a decrease in property values. Conversely, lower mortgage interest rates make purchasing a home more affordable and can lead to an increase in demand and property values. Therefore, the correct answer is B, as rising interest rates would have a negative impact on property values. A, C, and D are incorrect because they suggest that rising interest rates would have a positive, neutral, or no impact on property values, respectively, which is not the case.