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Because ____ real estate investment trusts essentially represent a fixed-income portfolio, their market values will ____ as interest rates increase.

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User Jianna
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1 Answer

4 votes

Answer:

The correct words for the blank space are: mortgage; decrease.

Step-by-step explanation:

A mortgage is a loan used to purchase a home where the property serves as the borrower's collateral. If included within a portfolio, they represent a fixed-income portfolio because their market value will decrease if interest rates are raised. This is because the higher is an interest rate, the lesser people will be able to afford to pay for them thus home prices will have to go down so that they can be purchased.

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User Addohm
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