Your friend Boise, is interested in a loan with an interest rate to compensate for the "unexpected" in the 2022 mortgage market (incl. the Fed's rate increase on 11-04-22) (*).

(a) Describe two factors that Boise must consider before he goes to ABC Bank for his loan.

(b) Boise asks you for some advice on what to consider before he agrees to a loan contract with ABC Bank. Explain two risk factors associated with a home mortgage loan in 2022 (incl. the Fed's rate increase as of 11-04-22). Include one macroeconomic factor to support your response to Boise. (notes: (1) ABC Bank is in the U.S. and (2) Boise is not a high risk borrower and is looking for a loan to buy a home in the U.S.). (*) The benchmark federal funds rate is in range of 3.75% to 4.0% as of 11-04-22.