A two percent rise in interest rates would most likely affect new housing by making the price of the houses fall in the long run.
As the interest rate of possessing a mortgage rises, many individuals would not afford a house with a mortgage.
Subsequently, as people are shying away from possessing mortgages with high-interest rates, home investors and sellers need to reduce their house prices to attract buyers.
Hence, in this case, it is concluded that a two percent rise in interest rates would most likely affect new housing by making the price of the houses reduce in the long run.
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