Question

A fixed-rate mortgage originator is adversely affected by:

a) Decreasing interest rates
b) Increasing property values
c) Inflationary economic conditions
d) Fluctuations in the stock market

Answer 1

A fixed-rate mortgage originator is most adversely affected by decreasing interest rates and inflationary economic conditions.

Step-by-step explanation:

A fixed-rate mortgage originator is most adversely affected by decreasing interest rates and inflationary economic conditions.

When interest rates decrease, lenders are not able to charge as much, leading to lower profits for the mortgage originator. Inflationary economic conditions can lead to higher costs for the originator, reducing their overall profitability.

On the other hand, increasing property values and fluctuations in the stock market may have some impact on the mortgage originator's business, but they are not the primary factors that directly affect their operations.