Sentences with phrase «market interest rates decrease»

For example, if market interest rates decrease in the future, a business would lose on the fixed - rate liability because it will pay at a higher fixed rate than the prevalent market rates.

If market interest rates decrease to a level lower than the fixed rate, the business would be paying more interest.

If market interest rates decrease in the future, and cause the variable rate to adjust downward to a level lower than the business» original fixed rate, the business would be paying less interest.

Not exact matches

In order to secure market share, it will need to differentiate its loans from competitors, which is hard to do without either decreasing interest rates substantially or lowering lending standards.

«Emerging market powers eager to move away from being tied to the monetary policy of the U.S. and the banking system as well as to adopt the block chain as a payment system prove willing adherents as they adjust to zero interest rates and the decrease in systematic risk.»

Interest rate increases can cause the price of a money market security to decrease.

Performance of companies in the financials sector may be adversely impacted by many factors, including, among others, government regulations, economic conditions, credit rating downgrades, changes in interest rates, and decreased liquidity in credit markets.

Market expectations of future US short - term interest rates also decreased.

Also, consider that refinancing gives you access to variable interest rates, which increase or decrease during your repayment according to market influences.

If market interest rates rise to 9.0 %, your bond decreases to roughly $ 888 ($ 80 / $ 888 = 9.0 %).

In general, bond prices are inversely correlated with market interest rates — so if I'm holding a bond portfolio and market interest rates go up, then my portfolio will decrease in value assuming all else is held equal.

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.

If nominal interest rates increased at a faster rate than inflation, then real interest rates might rise, leading to a decrease in the value of inflation - protected securities.Diversification does not assure a profit or protect against loss in a declining market.

Due to the highly competitive nature of the unsecured loan market, the interest rate charged for unsecured loans has been decreasing over the years and at the present time unsecured loans» interest rate does not differ much from secured loans» rate.

A MYGA with a Market Value Adjustment would increase / decrease the amount of money available upon premature surrender if interest rates have decreased / increased since purchase.

A decrease in interest rates will prompt investors to move money from the bond market to the equity market, which then starts to rise with the influx of new capital.

And, while it usually takes at least 12 months for any increase or decrease in interest rates to be felt in a widespread economic way, the market's response to a change (or news of a potential change) is often more immediate.

On the other hand, if the market believes that the FOMC has set the fed funds rate too high, the opposite happens — long - term interest rates decrease because the market believes future levels of inflation will decrease.

The interest you pay on these loans may increase or decrease after it has been originated depending upon changes to that market index rate.

Generally when market interest rates fall, the amount of the distributions will decrease.

The earliest ARMs didn't offer any discount on the initial rate — no «teasers» here — but instead the opportunity that your mortgage rate and monthly payment would decrease as market interest rates returned more toward normal levels.

Generally, a decrease in market interest rates may result in a somewhat higher net amount payable upon withdrawal; rising interest rates may result in a somewhat lower net payment.

This means we may increase or decrease interest rates at any time, for example to reflect a change in the Bank of England bank rate, or if there are changes in market conditions.

Based on market indices approved by FHA, this interest rate is adjusted annually, and thus may decrease or increase over the term of the loan.

The Obama administration realized that with the decrease in home values due to the mortgage crisis and the economy, many homeowners do not have sufficient equity built up in their homes to traditionally refinance or restructure their mortgages to their advantage, despite the drop in interest rates that is prevalent right now in the housing market.

If market interest rates do not rise — or if they decrease — a fixed - rate mortgage will cost more than an ARM.

If market participants believe that there is higher inflation on the horizon, interest rates and bond yields will rise (and prices will decrease) to compensate for the loss of the purchasing power of future cash flows.

If the market believes that the FOMC has set the fed funds rate too high, the opposite happens, and long - term interest rates decrease relative to short - term interest rates — the yield curve flattens.

Any significant decline in our investment income as a result of falling interest rates, decreased dividend payment rates or general market conditions would have an adverse effect on our net income and, as a result, on our stockholders» equity and our policyholders» surplus.

Either an increase in interest rates or a decrease in ability to pay for housing can derail the market.

Increased interest rates may decrease attractiveness for issuers to enter into capital markets transactions, resulting in a corresponding decreasing demand for financial guarantee insurance.

That's because as market interest rates increase or decrease, interest payments would also be more or less.

I have parent plus loans that I can not decrease the 8.5 % interest rate to the current market rate without penalizing my ability to have debt forgiven in 10 - 20 years.

Your interest rates may increase or decrease as the market changes over time.

If an issuer exercises these provisions in a declining interest rate market, the Fund would have to replace the security with a lower yielding security resulting in a decreased return for investors.

If market interest rates go down, variable interest rates will also decrease.

In 2015 the life insurance industry posted a 7.3 percent increase in net income after taxes despite continued low interest rates and soft equity markets that resulted in a $ 2.2 billion decrease in capital gains, according to S&P Global Market Intelligence.

Note that this example assumes Frank's non-guaranteed policy performs as planned; however, according to the Wall Street Journal, the vast majority of these polices are underfunded due to fluctuations in the market and decreasing interest rates.

«Despite decreasing affordability in an already pricey housing market, higher interest rates might have a silver lining for first - time and low - income buyers looking to enter the market.

First, with fixed - rate notes, as interest rate yields increase, the market value of the note decreases.

- Capitalization - rate declines can be triggered by strengthening local market conditions, which improve investor risk perceptions and appreciation expectations, as well as by decreases in interest rates and returns in alternative investment vehicles, such as stocks and bonds.

The bottom line is that if you're in the market for a home and interest rates decrease or remain attractively low, it's time to get excited about the housing market.

Demand for new homes and resale homes will decrease with rising interest rates and with the approaching inflation this year, after a short spurt of buyers trying to get in on the market before the rates (and home prices) get too high.

Though the government, housing market, economy, and stock market cause mortgage rates to increase and decrease, there are personal factors that will cause interest rates to vary from borrower to borrower.

Ryan discusses the death of Osama Bin Laden; Ryan reviews the economic news of the week; Ryan notices the correlation between increased home sales and interest rate drops; Louis notes we can't expect the housing market to be supported by further decreases in rates as they are already near historic lows; Ryan explains that interest rates change once every four hours; Ryan notes the difference between getting a quote and being locked in to an interest rate; Ryan advises the importance of keeping in touch with your mortgage lender; Louis notes that interest rates change a lot faster than home prices; Ryan notes that the consumer confidence was up, Ryan and Louis discuss the Fed's decision to keep interest rates where they are and to continue the $ 600 billion QE2 program; Ryan and Louis discuss the Fed's view that inflation is nascent; Louis notes that not only does the Fed not see inflation that exists but disclaims any responsibility for it; Louis asserts that there is a correlation between oil prices and Fed policy; Louis discusses Ben Bernanke's assertion that the Fed can't control oil prices but that they somehow can control the impact of higher oil prices on the rest of the economy; Louis also remarks on Bernanke's view of the dollar - the claim that a strong dollar can be achieved through the Fed's current policy as it is their belief that they are creating a sound economy and therefore a sound dollar; Louis notes the irony of the Fed chastising Congress» spendthrift ways — if the Fed did not monetize the debt, Congress could» nt spend; Louis noted that as Bernanke spoke the prices of gold and silver rose as it seemed that the Fed has no interest in cutting off the easy money; the current Fed policy will keep interest rates low; Ryan notes that the Fed knows that they can't let interest rates rise because of the housing mess; Louis notes that the Fed has a Hobson's Choice - either keep rates low or let interest rates rise and cut off the recovery.