Sentences with phrase «of low interest rates means»

Not exact matches

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.

First the line about «it shows how unreliable interest rates can be as an indicator of appropriate monetary policy» means that low interest rates do not necessarily mean loose policy.

Chris Rupkey, chief financial economist at MUFG Union Bank: «The era of low interest rates is at an end which means the proverbial punch in the punch bowl is leaving the party.

While U.S. savings bonds have lost popularity as a means of long - term savings due to the low interest rates they currently earn, some retirees have been holding on to bonds that were issued when rates were higher.

The markets won't get off of «lower for longer,» meaning they expect lower interest rates forever.

Borrowers who take advantage of this special, limited - time consolidation option would also receive up to a 0.5 percent reduction to their interest rate on some of their loans, which means lower monthly payments and saving hundreds in interest.

You can also extend the term of your loan, at the same interest rate, which could lower your monthly payments but could mean you end up paying more in interest overall.

This does not mean they will be zero, but when juxtaposed with pre-recession normal short - term interest rates of, say, 4 to 4 1/2 %, it may be jarring to see the underlying r - star guiding us towards a new normal of 3 to 3 1/2 % — or even lower.

Achievement of these goals was considered by the HRC as very challenging, even aggressive, given the expected modest economic growth for 2007 for the financial services industry, the impact and duration of the on - going flat / inverted yield curve (meaning short - term interest rates that are virtually equal to or exceed long - term interest rates, thus lowering profit margins for financial services companies that borrow cash at short - term rates and lend at long - term rates), potentially higher credit losses, fewer available high - quality, high - yielding loans and investment opportunities, and a consumer shift from non-interest to interest - bearing deposits.

Low inflation and the impossibility of pushing nominal interest rates significantly below zero meant that there was little scope for lowering real interest rates and easing credit conditions by conventional means.

The low level of interest rates means that even though debt levels are higher, the share of household income devoted to paying mortgage interest is lower than it has been for some time.

Increased government spending, low but slowly rising interest rates, and the repatriation of business and corporate funds back to the US means it's a healthy, safe market for everyone.

MH: Lower interest rates mean slower accruals of interest in the government's own Social Security and medical care funds.

While refinancing could mean a lower interest rate, better repayment terms, and faster debt payoff, it's definitely not the best option for 100 percent of borrowers.

As long as your debt - to - income ratio is low, however, and you have a larger equity position — meaning you can afford a larger down payment — you stand a good chance of getting approved for a loan with a decent interest rate.

Variable interest rates can be alluring — a low initial APR can mean a lot of savings in the first few years of repayment.

They usually come with a much lower interest rate, which means you can get out of debt faster.

The combination of these factors means real interest rates are likely to trade at a lower level than was the case 10 or 20 years ago.

A credit score usually means you can keep more of your money because you will receive lower interest rates on your home or car loan.

If you're spending beyond your means, or have a lot of high - interest debt, then there is a chance of less likely to qualify for the lowest rates on a mortgage.

So, what does this all mean in the context of today's historically low interest rate environment?

However, this was partly because Dollar Bank provided no zero - point mortgages, meaning that its advertised rates included the effect of purchasing mortgage points in order to lower the final interest rate.

Our reviews of the biggest mortgage lenders will help you find what you need, whether that means a lower down payment, better interest rate or higher standards of customer service.

But lower interest rates generally mean higher stock and bond prices, as well as increases in the value of real estate, which has been another important source of wealth for many savers, particularly seniors.

But this combination of higher savings and lower investment means that the price of borrowing those savings in order to invest — the neutral interest rate — has ground even lower.

This means some traders are using high interest rates to calculate the present value of profits, while others are using low rates.

This means that if interest rates rise the price of a high duration bond will fall more than the price of a low duration bond.

If you are convinced that lowering the interest rate, pumping money into the economy and ramping - up government spending is beneficial, then from your perspective a failure of such measures to sustainably boost the rate of economic growth can only mean that the measures weren't aggressive enough.

Lower interest rates, slower amortization rates («interest - only loans»), lower down payments and easier credit terms enabled millions of Americans to take on huge debts today with the hope of reaping huge capital gains sometime in the future — or simply to avoid having to pay more as home prices rose beyond their mLower interest rates, slower amortization rates («interest - only loans»), lower down payments and easier credit terms enabled millions of Americans to take on huge debts today with the hope of reaping huge capital gains sometime in the future — or simply to avoid having to pay more as home prices rose beyond their mlower down payments and easier credit terms enabled millions of Americans to take on huge debts today with the hope of reaping huge capital gains sometime in the future — or simply to avoid having to pay more as home prices rose beyond their means.

It is generally believed by those unfamiliar with economic theory that credit expansion and an increase in the quantity of money in circulation are efficacious means for lowering the rate of interest permanently below the height it would attain on a non-manipulated capital and loan market.

The requirement of tangible benefit means that FHA Streamline Refinance is usually only available if prevailing interest rates are lower than the rate on your current mortgage.

Despite the difficulties endured during the era of post-Lehman austerity, commercial and private - sector debt levels are low: Nonperforming loans are below 5 % and the banking system, unlike those of Poland or Hungary, did not have to tackle the fallout from high levels of foreign currency loans, because low interest rates and a stable Czech koruna meant these weren't taken up in large quantities.

This can mean a super low interest rate today, but with the chance of the rate increasing in the future.

This is not meant to be, hence last week's monetary policy response of lowering interest rates.

Because the loan is divided among a large number of investors (meaning the overall risk is reduced), P2P loans have lower interest rates than online loans and fewer eligibility requirements than bank loans.

A credit card balance transfer simply means moving your debt from your existing cards onto another new card which usually has a lower rate of interest.

Thereby, the Bank of Japan means to secure low or negative real interest rates and set in motion a self - reinforcing dynamics of rising inflation expectations, an improving output gap, and broad actual increases in prices and wages (view post here).

The USD is banging on big resistance levels ahead of an FOMC that includes only the release of a policy statement and fairly low expectations, ironically meaning that surprise risk may be underappreciated, especially given conflicting extremes in speculative US dollar short and US interest rate shorts.

A loan grade of A1, for example, has the lowest risks and the best interest rates, whereas a G5 loan means you have a lower credit score and bring more risk to the table.

A higher credit score could mean lower auto loan interest rates, and approval for other credit items such as mortgages, lines of credit, and personal loans.

Lower personal loan rates mean less cash out of your pocket each month thanks to less interest.

The relative cost of mortgage interest is only part of this equation, which means lower mortgage rates based on a falling 10 yr yield would likely not stimulate home buying at this point.

However, he said, «even at lower rates, the amounts you borrow to pay for school can mean that you pay thousands of dollars extra in interest.»

This also means that triple net lease REITs, which are often used by yield - hungry investors in a low interest rate environment as bond alternatives, can be thought of as very long - term duration bond proxies.

Jean explains what an environment of low growth and low interest rates means for portfolio allocations.

Assuming a similar rate, mortgages with longer terms offer lower monthly payments than shorter ones, but the increased number of payments means that you'll pay more in total interest as well.

A lower neutral rate also makes it more likely that interest rates will be constrained by the effective lower bound, meaning monetary policy will have less scope to support income growth during periods of economic weakness.

«And where that means, so for example, that we can sensibly - you borrow more to invest in the infrastructure that leads to more housing - take advantage of some of the record low interest rates that we have, I think we should absolutely be considering that.»

That means focusing on the lower - hanging fruit in terms of cutting costs - such as cutting interest rates, which are currently up to 6.1 %, and have been attacked as bafflingly high by a long line of former Conservative and Labour education ministers.

Having a good credit history makes it possible for service providers to gauge how much of a risk you are, a good rating means more financial options and opportunities — this makes it possible to apply for a bigger bond with home loan providers at low interest rates, plus you can also get various other loans from other institutions at affordable rates.