Sentences with phrase «because market interest rates»

But there's also a best - case scenario: a buyer's monthly payments go down during the variable term of the loan because market interest rates are falling.

Not exact matches

That's important because the ECB's liquidity is one of the biggest remaining supporting factors behind the global stock market rally, now that the Federal Reserve has ended its own «quantitative easing» program and has started to raise official U.S. interest rates.

That meant they not only lost out on the market gains that followed the recession, but they also continue to lose earning power because of inflation and low interest rates.

In a client note on Thursday titled «Yanking down the yields,» the interest - rates strategist projected that bond yields would be much lower than the markets expected because central banks including the Federal Reserve were reluctant to raise interest rates.

Nor did it implode when interest rates started edging up (because income and job growth were picking up and supporting the housing market).

If the Fed is indeed putting off raising short - term interest rates — perhaps because of an economic slowdown overseas, economic turmoil in Russia, or because of lower oil prices — then that's potentially good news for the stock market.

That's because it will be one of the few remaining data points that Federal Reserve Chair Janet Yellen and the rest of the Federal Open Market Committee will have before they decide whether or not to begin the process of raising interest rates at their upcoming meeting December 15th and 16th.

In fact, currency markets now are helping the central bank in that regard, since a stronger currency essentially has the same effect on the economy as higher interest rates because it will reduce exports and corporate profits.

While this deal has been discussed for several years, Kevin Manning, an analyst at BMO Capital Markets, says the purchase was made now because of worries over rising interest rates.

Conservative politicians and hawkish economists have at times criticized the Fed's «full employment» mandate in large part because the main monetary policy tool, the short - term interest rate, has only an indirect effect on the labor market.

StatsCan will retain the final word, and the Bank of Canada's outlook will always guide markets because that is the one on which interest rates will be set.

I think you said earlier this year that you weren't worried that the market was in a bubble, because interest rates were staying low.

It seems likely that having a very elevated aggregate capacity was helpful in controlling market rates initially, perhaps because it showed the FOMC's commitment to achieving interest rate control, but it's unclear exactly how much available capacity, or «headroom,» is needed to maintain such control.

The wage pop [last Friday's 2.9 % growth in hourly wages] spooked the markets because investors, already skittish as valuations were a bit steep (though not as bad as people have been saying, given strong current and expected corporate earnings), envisioned this sequence: wage growth gooses price growth (i.e., inflation), which raises both market and Federal Reserve interest rates, which slows growth and shaves corporate profit margins.

While stocks have a terminal value beyond a 10 - year period, the effects of interest rates and nominal growth on those projections largely cancel out because higher nominal GDP growth over a given 10 - year horizon is correlated with both higher interest rates and generally lower market valuations at the end of that period.

Definition: Money market accounts pay competitive interest rates (higher than savings accounts) in exchange for the use of your money.Advice: Money market accounts pay higher interest rates because they usually demand that you keep a higher balance.

Depressed interest rates were typically associated with weak market outcomes over the following decade, largely because investors reacted to depressed interest rates with yield - seeking speculation - driving valuations up and driving subsequent prospective returns down.

Because the stock of reserves is so high, central banks pay «interest on reserves» (IOR) to influence market interest rates.

At least for now, the stock market is not the least bit concerned because interest rates are still historically low.

Our view is that the equity markets have low volatility because we have been experiencing low volatility in the things that drive equity prices — interest rates, economic data and corporate earnings.

The markets loved Yellen because she kept interest rates low and she was slow to raise them.

Meantime, the market was also watching the Federal Reserve closely because Federal Reserve officials plan to continue hiking interest rates.

The reason why valuations are so tightly correlated with 10 - 12 year returns is that extreme deviations from historical norms tend to wash out over that horizon, and because interest rate fluctuations have a much less durable impact on market valuations than investors imagine.

Because credit and default risk are the dominant drivers of valuations of high yield bonds, changes in market interest rates are relatively less important.

That is one of the reasons that Yellen and other Fed officials have been very aggressively pushing this slow - normalization story, because they don't want financial markets to suddenly overestimate the Fed's reaction function and then start to bid up interest rates very quickly.

It also offers stability and peace of mind because your monthly payment won't change no matter what happens to inflation or market interest rates.

It was problematic because many of those bonds were purchased a time when interest rates were much higher and enjoyed far fatter bond coupons than anything then available on the market.

Because interest rates are already at zero, the Fed's hints about the future path of rates are just as important a compass for guiding financial market traffic as rates are themselves.

Specifically, Defendants made false and / or misleading statements and / or failed to disclose that: (i) the Company was engaged in predatory lending practices that saddled subprime borrowers and / or those with poor or limited credit histories with high - interest rate debt that they could not repay; (ii) many of the Company's customers were using Qudian - provided loans to repay their existing loans, thereby inflating the Company's revenues and active borrower numbers and increasing the likelihood of defaults; (iii) the Company was providing online loans to college students despite a governmental ban on the practice; (iv) the Company was engaged overly aggressive and improper collection practices; (v) the Company had understated the number of its non-performing loans in the Registration Statement and Prospectus; (vi) because of the Company's improper lending, underwriting and collection practices it was subject to a heightened risk of adverse actions by Chinese regulators; (vii) the Company's largest sales platform and strategic partner, Alipay, and Ant Financial, could unilaterally cap the APR for loans provided by Qudian; (viii) the Company had failed to implement necessary safeguards to protect customer data; (ix) data for nearly one million Company customers had been leaked for sale to the black market, including names, addresses, phone numbers, loan information, accounts and, in some cases, passwords to CHIS, the state - backed higher - education qualification verification institution in China, subjecting the Company to undisclosed risks of penalties and financial and reputational harm; and (x) as a result of the foregoing, Qudian's public statements were materially false and misleading at all relevant times.

Interest rates have continued to be pushed lower and lower and lower and most of this is because the Fed keeps on adjusting that federal fund's rate and adjusting interest rates down in the way that they do that is by putting cash into the market and buying back bonds or short - term bonds with the federal fundInterest rates have continued to be pushed lower and lower and lower and most of this is because the Fed keeps on adjusting that federal fund's rate and adjusting interest rates down in the way that they do that is by putting cash into the market and buying back bonds or short - term bonds with the federal fundinterest rates down in the way that they do that is by putting cash into the market and buying back bonds or short - term bonds with the federal fund's rate.

These savings accounts are also a much better alternative to traditional money market accounts because they pay a much higher interest rate.

Because the long - run trend in mortgage interest rates has been downward, from a peak of 18 percent in 1981, the housing market has benefited from consistently increasing house - buying power.

Their cost of capital is a function partly of low interest rates and part of the implicit share price is a function of the fact that investors have looked at equities for dividends rather than bonds for yield because the bond market is so expensive.

Predictability is the key word — the central bank is expected to raise interest rates up to three times in 2018, but the moves will likely have little impact because the markets already anticipate them, observers say.

This is because fixed - rate mortgages are mortgage loans for which the interest rate does not change — even if market mortgage rates move higher or lower in the future.

What do I mean, to start off the year major stock market were down anywhere from 5 - 10 % because the Federal Reserve was discussing raising interest rates, which in turn made everyone extremely skeptical of investing any more money in stocks, and actually selling off a large portion.

He believes the instability in these markets will cause the feds will to maintain interest rates because they are hoping that things would calm down enough by Dec..

QE is misused true, it should be used to pay down debts more and companies less, and the interest rate should be raised half a percent straight away, maybe more to avoid a long - term bear market soon, but the US Dollar is strong right now because the US economy is fairly productive.

In low interest rate markets, like the past 10 - years, CDs are less enticing because returns are miniscule.

The Bank of Canada and the federal government have long worried about Canada's housing market continuing to expand beyond fundamental levels because of the potential for a sudden and steep crash once interest rates start to rise, which would not only put many homeowners» finances in jeopardy, but could also sideswipe the economy.

But he stresses that he did this analysis on his own because he's been asked so many times lately what could happen to the housing market — which has already suffered a slump in sales and an easing of growth in prices since tougher mortgage lending rules were introduced last summer — if interest rates inch up from historic lows.

Before now, a gold bear market persisted not because the metal had lost its status necessarily, but because of the strong U.S. dollar and, more significantly, positive real interest rates.

I am constantly toying with rebalancing but have not done it yet because I keep reading that Bond markets are in a bubble and when interest rates go up the price will collapse or at least head south.

The recently published minute of the Fed's meeting last month showed some members of the policy committee have argued for raising interest rates more quickly in coming months because of strong economic growth, a robust job market and rising inflation, which last month exceeded the Fed's target of 2 percent.

«If the central bank is intervening because there are huge capital inflows, the domestic interest rate in the market will go up.

Just by having a conversation about negative interest rates tells you the bubble ran because, you know, that's the epitome of a hot potato market.

And by doing that, they would make small incremental adjustments to the effective Fed funds rate or the Fed funds target rate at that point in time and actually, because it wasn't posted on Bloomberg or wasn't said at that point in time, in the late 70s, early 80s you wouldn't actually know that the Fed was actually targeting or adjusting interest rates until you actually saw those processes or felt them in the marketplace occurring in the short - term markets.

These markets fall whenever there's serious talk of an interest rate increase, because it discourages speculation — and that's what the Bubble Economy is still based on these days.

Because prospective 12 - year annual market returns have never failed to reach at least 8 % by the completion of a market cycle, regardless of the level of interest rates, we view a 40 % market decline as a rather minimal target over the completion of this market cycle.

I think the currency and credit markets have been «quiet» ahead of this meeting because it could mark a «sea change» towards tighter Fed policy... and thus higher US interest rates and a higher USD.