Which factors are primary in determining mortgage interest rates?

The correct choice identifies the main factors influencing mortgage interest rates, which are economic indicators, borrower creditworthiness, and loan type.

Economic indicators, such as inflation rates, employment rates, and overall economic growth, play a crucial role because they affect how much lenders are willing to charge for loans. Higher inflation typically leads to higher rates, as lenders want to maintain their profit margin against the diminishing purchasing power of money.

Borrower creditworthiness is essential because it assesses the risk of lending to an individual. Lenders evaluate a borrower's credit score, income, debt-to-income ratio, and overall financial history to determine how likely they are to repay the loan. A borrower with a strong credit profile generally qualifies for lower interest rates as they are viewed as lower risk.

The type of loan also influences the mortgage rate. Different loan products, like fixed-rate versus adjustable-rate mortgages, have varying risk profiles and terms associated with them, affecting the interest rates offered.

While other options do touch on relevant aspects of mortgage lending, they do not encompass the primary factors as holistically as this choice does. Economic stability and loan duration are indeed relevant, but they do not capture the borrower-specific elements that are critical in determining individual rates. Availability of funds and market competition are