Final answer:
After a hurricane, the demand for home repair loans increases, likely leading to higher interest rates, not a decrease. This increase is due to a surge in demand that, if not met with an increased supply, results in higher borrowing costs.
Step-by-step explanation:
After a devastating hurricane, households try to secure loans to repair and rebuild. This would most likely lead to an increase in interest rates of home repair loans as the demand for those loans increased. The reason for this is that more people are seeking loans to cover the costs of repairs, and unless the supply of loans increases as well, the higher demand would generally lead to higher interest rates.
Contrary to the options b and c mentioning a fall in interest rates, such a scenario would generally occur when demand decreases or when there is a higher competition among lenders, neither of which are implied to be happening in the aftermath of the hurricane as described. Therefore, these options are not consistent with the typical dynamics of supply and demand in the financial market.