Sentences with phrase «potential rise in the interest rate»

Don't forget to allow for a potential rise in the interest rate.

«We should feel encouraged by this behaviour — it means Canadians are well positioned to weather a potential rise in interest rates.»

Not exact matches

And as the Fed's bond holdings keep growing, the portfolio becomes more and more vulnerable to a sudden rise in interest rates (despite Bernanke's confidence that the Fed can manage any potential losses).

If you're having a difficult time handling the potential risks from rising interest rates, it could make sense to have your safe bucket in cash as opposed to bonds.

Investments in asset backed and mortgage backed securities are subject to prepayment risk which can limit the potential for gain during a declining interest rate environment and increases the potential for loss in a rising interest rate environment.

New York's real estate industry has plenty to worry about in early 2018, from rising interest rates to trade wars and a potential cyclical downturn.

Investments in mortgage - backed securities are subject to prepayment risk, which can limit the potential for gain during a declining interest rate environment and increase the potential for loss in a rising interest rate environment.

That tantrum refers to the potential reaction of investors and global markets — accustomed to years of easy money — in the face of a simultaneous rise in interest rates and yields in the US, Europe and Japan.

As usual, I don't place too much emphasis on this sort of forecast, but to the extent that I make any comments at all about the outlook for 2006, the bottom line is this: 1) we can't rule out modest potential for stock appreciation, which would require the maintenance or expansion of already high price / peak earnings multiples; 2) we also should recognize an uncomfortably large potential for market losses, particularly given that the current bull market has now outlived the median and average bull, yet at higher valuations than most bulls have achieved, a flat yield curve with rising interest rate pressures, an extended period of internal divergence as measured by breadth and other market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling risk of an oncoming recession, which would become more of a factor if we observe a substantial widening of credit spreads and weakness in the ISM Purchasing Managers Index in the months ahead, and; 4) there remains substantial potential for U.S. dollar weakness coupled with «unexpectedly» persistent inflation pressures, particularly if we do observe economic weakness.

The organization cited slower growth in emerging markets, especially in China, falling commodity prices, and rising interest rates in the U.S. as potential risks to global growth.

In this environment of modestly rising interest rates and fuller valuations, we believe innovative companies with the potential to disrupt existing industries, including in emerging markets, could fare particularly welIn this environment of modestly rising interest rates and fuller valuations, we believe innovative companies with the potential to disrupt existing industries, including in emerging markets, could fare particularly welin emerging markets, could fare particularly well.

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.

Nevertheless, the apparent success of the ECB's policy in overcoming the threat of deflation increased speculation about a potential tightening of monetary policy, possibly even before the cessation of the central bank's bond purchases — scheduled to continue for at least the rest of the year — and in the wake of the ECB meeting pushed market estimates of the odds of a rise in official interest rates before the end of 2017 to more than 50 %.

We think the speculation about a potential future tightening of monetary policy by the ECB — whether in the form of a tapering of bond purchases or a rise in interest rates — has moved too far ahead of the economic and political realities within the eurozone.

Choose your pick of potential flashpoints: rising U.S. interest rates, weakening loan covenants, or the boom in exchange traded funds.

I also think it would be judicious for investors to consider protection from potential euro weakness, particularly at a time when interest rates in the United States seem likely to rise and the ECB's QE program is underway and might even be accelerated if need be.

In past commentaries, we identified rising interest rates and the mean - reverting tendencies of both valuation and performance as potential value catalysts.

Yet rising interest rates from the Federal Reserve have reduced the amount of loan origination activity in some quarters, and that has the potential to put pressure on companies that benefit from that activity.

Whether inflation rises or the Federal Reserve Bank uses its power over interest rates to limit the potential inflationary impact of the falling dollar, the ultimate outcome of our recent overdependence on foreign saving will be a lower standard of living (or slower increases in living standards), such that decent levels of retirement income (private and public) can not be maintained.

If interest rates rise, the market price of outstanding CDs will generally decline, creating a potential loss should you decide to sell them in the secondary market.

Good news for the patient homebuyer, but the decision to wait and buy should also factor in potential rising interest rates as well as job security and economic growth.

This section covers interest rates in Australia and the potential impacts of rising rates.

But some things haven't changed — investors are still challenged by the seemingly never - ending search for yield in an environment of potential rising interest rates.

This method can help to accelerate the reduction of the current loan principal amount, reducing future potential interest costs in the event of the rate indices rising.

Also keep in mind that flexible bond strategies have the potential to outperform in rising and flat interest rate environments, and can help provide meaningful diversification, which may reduce overall volatility in a portfolio.

If you have been paying interest of 2.4 % or less while 5 year fixed rates have been between 2.69 % -3.09 % your savings will exceed any potential extra cost of borrowing in the final 12 - 24 months if rates were to rise near the end of your mortgage term.

With lumber prices skyrocketing, skilled labor in short supply and new limits on state and local tax deductions already raising the effective cost of homeownership, a rise in short - term interest rates will force even more potential buyers to the sidelines.

These trends can be expected to continue for some time and dividend stocks, by turn, should remain in strong demand, not only for their relatively attractive yields, but also their potential to insulate investors as interest rates slowly begin to rise south of the border.

HYHG seeks to hedge high yield bonds against the potential negative impact of rising Treasury interest rates by taking short positions in U.S. Treasury futures.

Investments in asset backed and mortgage backed securities are subject to prepayment risk which can limit the potential for gain during a declining interest rate environment and increases the potential for loss in a rising interest rate environment.

«The overall dynamics remain somewhat challenging as investors evaluate the effect of rising interest rates and the potential impact of the current [U.S.] administration,» Boynton said in January.

While current policies use more conservative interest rate models, the potential for decreases in coverage and rising payments still is a risk due to the general structure of universal life policies.

But the biggest risk is that you could forgo thousands of dollars in potential earnings on your investment if interest rates rise, because the policies don't guarantee that you'll earn market rates.

Louis and Ryan discuss the implications of the U.S. and China relationship; Louis discusses the inflationary implications of QE2; Jim McCowan indicates that now is a good time to get a mortgage and discusses the state of the Arlington VA real estate market; Louis discusses the 1st quarter 2011 HomeGain home prices survey and the Virginia results; Jim and Louis discuss the rent to buy ratio; Louis discusses the advantages of getting a low interest rate mortgage prior to the rise in inflation and interest rates; Ryan and Louis discuss the employment numbers and the potential for recovery; Jim notes that only a small percentage of homes in Arlington are short sales; Jim explains how Arlington short sales get priced and buyer's misconceptions that they can offer less than the list price; Louis contrasts the Arlington home pricing experience vs. the national experience based on the HomeGain home values survey.

Downside risks for housing are lessening, but high gas prices, troubles in the euro zone, and the potential for rising mortgage interest rates still muddy the outlook.

Two out of three first - time buyers considering a home purchase are confident in future housing values but are thinking about monthly payments, the potential for rising property taxes and interest rates, says a new report by Genworth Financial Canada.

Three in 10 potential buyers say they plan to purchase a home in the next 18 months, with 32 percent of respondents citing low interest rates and 20 percent attributing rising rental costs as reasons...

On the flip side, if more potential buyers are edged out by increasing interest rates and a continued rise in prices, those who are still in the market to buy will, eventually, have a bit more leverage to negotiate with sellers.

RISMEDIA, October 31, 2013 — Would - be San Francisco Bay Area homebuyers spooked by fast - rising home prices, a brief uptick in mortgage interest rates and potential fallout from the federal government shutdown took a break from their home search in the third quarter of 2013, spurring a slowdown in home sales that, for the first time in recent memory, was accompanied by a decline in median home prices, according to an analysis of MLS data by the research division of Better Homes and Gardens Mason - McDuffie Real Estate.