Sentences with phrase «interest rate increases become»

Not exact matches

As interest rates for these seemingly safer investments increase, they become more attractive to investors, and as such, the incentive for investors to plow funds into high - risk opportunities decreases.

The amount of debt that is projected under the extended baseline would reduce national saving and income in the long term; increase the government's interest costs, putting more pressure on the rest of the budget; limit lawmakers» ability to respond to unforeseen events; and increase the likelihood of a fiscal crisis, an occurrence in which investors become unwilling to finance a government's borrowing unless they are compensated with very high interest rates.

It would not be surprising if the household sector had become more sensitive to news about interest rates, given the increased debt and debt servicing loads that it is now carrying.

The second phase occurred from around mid year, when it became widely expected by the market that the US economy was going to have a soft landing, and that no further increases in US interest rates were likely.

The interest rate - sensitivity of the Low Volatility factor has increased in recent years Mainly due to the sectoral biases from the long portfolio Sector - neutrality reduces the interest rate - sensitivity, albeit at the cost of performance INTRODUCTION Low Volatility strategies have become popular

Some worry about what will happen to them in the months ahead, especially if the Fed's eventual interest - rate increase becomes a trigger for capital flight.

In a very real way, even our jobs have become more valuable in a declining interest rate environment if you can find one that pays you a steady or ever increasing amount.

With the interest rate increase, debt becomes more and more expensive.

The dollar fell a cent against the U.S. currency as traders realized the odds of another interest - rate increase this year had become remote.

Early in the summer interest rates increased fairly dramatically when the Fed suggested that monetary policy would soon become less accommodating (what became known as «the taper»), and we became hopeful that attractive opportunities would develop.

Broadly speaking, central banks tend to increase interest rates when they become concerned about the prospects for consumer inflation.

After the four increases in official interest rates between November 1999 and May 2000, short - term market interest rates fell for a time as markets became more comfortable with the outlook for inflation.

I think the ability of the Treasury to sustain this action will become increasingly difficult as investors see that market downturn reports increase the likelihood that the Federal Reserve will hold interest rates where they are or lower them to prevent recession.

With equity markets (the TSXV notwithstanding) at all time highs and rumblings of interest rate increases being discussed, this issue promises to become more prevalent.

The heavy indebtedness that became a crisis around 1980 was due, not so much to the failure of the system as to the rapid increase in the cost of oil and the abrupt rise in interest rates.

For any reason, if your financial obligations increase and money becomes tighter than you had anticipated, you might only afford to pay the loan's interest rate and other fees.

Interest rates: The market interest rate is material for the value of a bond, because bonds might become less economically attractive in times of increasing interest rates and, thus, decrease iInterest rates: The market interest rate is material for the value of a bond, because bonds might become less economically attractive in times of increasing interest rates and, thus, decrease iinterest rate is material for the value of a bond, because bonds might become less economically attractive in times of increasing interest rates and, thus, decrease iinterest rates and, thus, decrease in value.

Reverse mortgage market analysts have indicated that the conditions will become less favorable the higher rates rise, making the HECM program more sensitive to interest rate increases than it has been historically.

When interest rates increase, borrowing becomes more expensive, dampening consumer demand for mortgages and other loan products and negatively affecting residential real estate prices.

Popular reasons for refinancing include: taking advantage of a lower interest rate that has become available, adding a spouse to the mortgage, or accessing more cash when equity rises due to an increase in the home's value.

If there is any chance a holder of individual bonds may need to sell their bonds and «cash out», interest rate risk could become a real problem (conversely, bonds» market prices would increase if the prevailing interest rate were to drop, as it did from 2001 through 2003.

«If the legislation passed by House Republicans or the plan by Senate Republicans becomes law, student loan rates would more than double over the next few years as interest rates increased,» Reid said.

One of the most important provisions of the CARD Act prevents issuers from increasing interest rates on existing credit card debt unless a cardholder becomes 60 days delinquent.

«While the increase in spending and borrowing will help support economic growth, households are increasingly becoming more vulnerable to a potential interest rate shock or slowdown in the housing market.»

My guess is that interest rates will increase, trade with the U.S. may become more difficult, and that may impact Canada.

As it becomes more costly for mortgage lenders to obtain money, they pass on their increased expenses to borrowers in the form of higher interest rates on mortgages and other kinds of credit.

Things like that are going to result in increased interest rates on your cards and other loans and life suddenly becomes very expensive.»

The mortgage that seems cheap and affordable initially may become too expensive to manage because of the sharp increase in the interest rate.

On the valuations of stocks, it feels like the thing that is driving recent increases in P / E is that the masses are becoming more accustomed to the ideas that 1) the entire world is getting older, 2) aging puts negative pressure on interest rates, 3) interest rates will be low for a long time, and 4) stocks should be valued with earnings yields at a slight premium to 10 year Treasury yields (as discussed in your last post).

This strategy has become popular over the past few years as interest rates have decreased, and house prices have increased.

That means people who took out universal life insurance coverage in the 1980s and 1990s, when interest rates hit their peak, saw their premiums gradually increase and potentially become unaffordable.

In response to the most recent rise in interest rates, stock price volatility increased causing investors to become more cautious about the stocks in their portfolios.

Heart rate variability (HRV) in psychiatric disorders has become an increasing area of interest in recent years following technological advances that enable non-invasive monitoring of autonomic nervous system regulation.

Increases in maintenance costs, collection fees, servicing interest, levies and municipal rates and taxes will become a real liability for the average property owner.

Also, with interest rates increasing, it is going to become even more difficult to find properties that work for investors,» one respondent wrote.

One could argue that the fed could just increase interest rates to slow inflation but that would be incredibly difficult because private and public sector debt would become more expensive creating a recession if not depression.

The housing market in San Diego and across the nation has become accustomed to artificially low interest rates over the last few years fueling price increases, only time will tell how the normalization of borrowing costs will affect the housing market and affordability.