Sentences with phrase «rates mean lower prices»

Remember, interest rates and bond prices move in opposite directions, so rising rates mean lower prices for existing bonds.

Not exact matches

While the province's five - year - old carbon tax means BC residents pay higher pump prices, offsetting cuts to their personal income tax have left them with the lowest tax rates in the country.

That means price increases, and that augurs inflation, which would mean, at some point, rate hikes, though up from an admittedly narrow and quite low range of 25 — 50 basis points via the federal funds rate.

Higher rates mean less investment, lower stock prices and more risk of financial instability.

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

Higher U.S. rates should help strengthen the U.S. dollar versus other currencies, which would mean lower prices on imports.

Since rising interest rates means the bond's fixed rate is not competitive against newly issued bonds at higher market rates, then it stands to reason that longer - term bonds (those with longer to pay at the lower rate) are going to see their prices fall further than short - term bonds.

Low interest rates increase duration, an attribute that helps to describe the price volatility that a bond will exhibit, meaning that low interest rates amplify bond price volatiliLow interest rates increase duration, an attribute that helps to describe the price volatility that a bond will exhibit, meaning that low interest rates amplify bond price volatililow interest rates amplify bond price volatility.

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.

The earnings yield (earnings per share divided by the share price, or the inverse of the price - to - earnings ratio) still looks attractive versus real (after inflation) bond yields, meaning stocks may be cheaper than they look in a low - rate world.

If households are prepared to commit 50 % of net income to housing, low rates mean high prices.

Conventional loans have risk - based pricing, which means if your credit score is lower than 740, you'll pay a higher interest rate on your loan.

If the answer is yes, rising rates may simply mean fewer competing bids and lower home prices — in other words, the home that formerly fetched $ 250,000 may only sell for $ 230,128.

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).

As Iacano points out, lower home mortgage interest rates can mean dramatically higher home prices.

These wage increases come alongside a negative inflation rate, meaning prices are particularly low at the moment.

And lowering California's overall cost of living also requires California to step back from having the highest tax rates of any state in the U.S. And to propel these reforms through California's state and local governments will mean taking on powerful monopolies who benefit from high prices and minimal competition.

Likewise, recent VED changes mean that while some first - year rates are still low for low - CO2 cars, the annual rate is # 140 for most conventional cars - or # 450 a year if your car has a list price of more than # 40,000.

These days, any automobile 25 years of age or older is eligible for «classic car» insurance — meaning dramatically lower rates for the customer at the price of use restrictions (no driving to work, for example) and annual mileage limits.

That's a very impressive list of kit for the price, and means the five - star Euro NCAP score the Micra was awarded with the Safety Pack applies to all models, nt the slightly lower four - star rating.

If the starting price of the car isn't too much of an obstacle, the hybrid Cayenne actually makes a relatively appealing company car because its low emissions mean it gets a low Benefit - in - Kind (BiK) rating of 13 % -17 %.

Lower overhead means lower prices, and our 4.8 out of 5 star Dealer Rating means we offer the best customer service arLower overhead means lower prices, and our 4.8 out of 5 star Dealer Rating means we offer the best customer service arlower prices, and our 4.8 out of 5 star Dealer Rating means we offer the best customer service around!

That said, the low price that Android tablet customers are coming to expect means that the potential for profit among hardware manufacturers without their own content hubs is shrinking at an alarming rate.

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.

Bonds have had low interest rates for a record amount of time, meaning bond prices have been unusually expensive compared to the bond interest they produce.

Sometimes the only direction is up, which means higher rates, lower prices in the future.

This means the 52bp pick up in yield that one gets today would result in a lower total return later, as bond prices would decrease in a rising interest rate environment.

When you start to see the yield curve flatten or even invert, meaning short - term rates become equal to or higher than long - term rates, and the line either becomes flat or sloped lower from left to right, then that usually signals trouble ahead in terms of a recession and lower market prices.

Relatively low but not surprising given an 8 year bull market that has increased stock prices, as well as the current low interest rate environment (which means that companies don't need to pay high dividends to attract investors).

For bonds this means a higher interest rate, which leads to a lower priced bond.

This means as the interest rates rise, sellers will be forced to keep house prices low to attract reluctant buyers.

Precision Pricing ™ means our student loan rates are just as low at 5 -, 10 -, 15 -, and 20 - year terms — and lower for everything in between.

In addition, lenders use risk - based pricing, which means that they charge higher interest rates for lower FICO scores.

Low interest rates mean more buying demand and continued price increases in certain Canadian real estate markets.

Yes, interest rates play a significant role, but as Porter and Kavcic point out in their report: «record low borrowing costs are the most obvious factor behind lofty home prices, [but] the fact that the surge in prices is so heavily concentrated in just two cities (and their environs) means that there are other important factors at play as well.»

The cities are listed in order of average price, starting with the lowest mean home insurance rate and ascending.

[Aside] Here is what «pricing a loan» means: If the lender considers you low - risk, then they will give you a lower interest rate.

Deflation is when the rate of inflation goes negative, meaning overall prices are lower than a year ago.

What today's buyers can take advantage of are lower home prices, fairly low mortgage rates, tax relief, and higher loan limits (meaning lower prices and greater availability for financing).

Lessons for the next bull market (yes there will be one eventually): Low interest rates and high liquidity do not mean stock prices will stay up.

The low (and falling) unemployment rate certainly suggests the former is very achievable; incredibly low mortgage interest rates mean the latter is theoretically more possible than ever (at least in most markets), despite rising home prices.

Such low rates mean affordable monthly carrying costs for homes bought on credit, even though house prices, by long - term historical standards, are quite high.

A key reason that these losses can be permanent is many fund managers actively buy and sell bonds, meaning they are highly likely to sell positions at a loss after a rise in rates, decline in credit rating or when a lack of liquidity may mean they have to sell at a lower market price.

You have funds available if there's ever an emergency — plus your debt comes at a lower price, as having good credit means you qualify for better interest rates.

Supply outstripping demand for any product translates to lower prices (which means higher rates in the case of bonds).

The earnings yield (earnings per share divided by the share price, or the inverse of the price - to - earnings ratio) still looks attractive versus real (after inflation) bond yields, meaning stocks may be cheaper than they look in a low - rate world.

The higher interest rates meant they focused their search on homes priced lower than what they looked at when they first thought about buying in 2016.

You can hold it and rent it, and if you're just a first - time homebuyer, or you're looking to buy an investment home or a luxury home, I mean again, interest rates being in the three to four percent, it's just hard to see that - even if prices went up - or I'm sorry, even if prices went down 15 or 20 percent, the fact that you can hold a property for such a low dollar amount monthly due to the low rates, it makes very much sense to buy.