4. Answer the questions on the right based on the following scenario: 8 Buying a Home - Personal Notes Scenario: You are getting a loan to buy your first 4 points home. It is a $250,000 home with 3 bedrooms and 2 bathrooms. The price is so low a. Based on what you are hearing from friends and what you know about supply because the economy was bad, a lot of people lost their jobs, and few people are and demand in financial markets, what would you predict about the level of buying homes. You got the following information from the bank: interest rates for house loans in the future? (2 points) Will they stay the same, increase, or decrease? (2 points) Loan Amount: $150,000 Interest Rate 1 month ago: 4.5% B IYA . A . LEX' XE Today: 4.1% Loan Period: 15 years (180 months) 14pt Paragraph - - 9 4 points b. Explain your answer by drawing and explaining 2 supply and demand curves, one showing the interest rate today (assume it is 4.1%) and one predicting what the interest rate will look like in 1 month. Upload your document in the space below (1 point per diagram, and 2 points for an explanation) ho B I U A . A . TEX' X 14pt Paragraph . . 2 6 10 2 points c. Based on what you know in this situation, does it matter when you make the decision to purchase a house? (1 point) Explain. (1 point) B I U A . A . T E = = X' X 14pt Paragraph . . 6 0 6