Today’s Interest Rates Still On The Rise: LoanLove.com Explains Some Of The Factors Driving This Upward Movement
A new Loan Love guide helps consumers understand three of the biggest indicators experts use when predicting mortgage interest rates.
San Diego, CA (PRWEB) July 27, 2013
LoanLove.com has a mission to help consumers and borrowers alike in obtaining the latest information on mortgage lending trends, the real-estate market and the U.S. financial landscape for the purpose of helping them obtain a home loan they love. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals. To fulfill this goal LoanLove.com is continually updating their website with new articles and guides. LoanLove.com continues to help homeowners to understand the real estate market with their new article explaining why today’s interest rates are on the rise.
The video that is posted along with the Loan Love article says: “If you have been watching any financial news at all you’ve probably noticed interest rates climbing like crazy lately and you’re probably wondering – will interest rates keep going up or will they go down?” While it seems like this is a question that only the experts have a hold on, the truth is that anyone can evaluate where interest rates are headed as long as they understand a few important factors.
The article goes on to explain: “Especially in recent years, it seems like the news is always full of stories about the economy and the indicators that help evaluate it. Although it may seem these news stories are intended to do little more than cause anxiety (or boredom), in fact, these indicators can give consumers a fairly good idea of whether interest rates are going to rise or fall – and that can be very valuable information to anyone interested in buying or refinancing a home. If you’re trying to determine if now is the best time to lock in a rate, you might want to take a look at the following three indicators to get an idea of how interest rates are likely to move. These 3 things are solid predictors for when interest rates go up or down.”
The first one is GDP, the Gross Domestic Product. It reflects the dollar amount of all goods and services that were produced and sold by companies located in the U.S. in that time. Statistically, the economy grows about 2.6 percent per year, which causes interest rates to rise. The second one is CPI, the Consumer Price Index. A high CPI equals high interest rates and vice versa – low CPI, low interest rates. The last one is Payroll Employment, and again higher numbers can cause interest rates to rise and lower numbers to fall. The GDP, CPI and payroll indicators are coincident indicators, meaning they respond quickly to shifts in the economy. This is in contrast to the unemployment rate which lags behind the economy; shifts in unemployment do not have an immediate impact on the economy and their effect on inflation is delayed.
The Loan Love article ends with this advice for homeowners and potential home buyers: “Next time the news shifts to the economy, don’t let your eyes glaze over or your mind wander: Keeping an eye on these rates and understanding what they mean can help you decide whether to lock in a rate now or whether to hold tight, which can end up saving you lots of money in the long run.”
For more information on any or all of these three mortgage interest rate predictors, please visit LoanLove.com to read the article in full.
For the original version on PRWeb visit: http://www.prweb.com/releases/loan-love/todays-interest-rates/prweb10971124.htm