Sentences with phrase «rise in interest rates reduces»

With negative amortization, a persistent rise in interest rates reduces the equity in the house unless the negative amortization is offset by house appreciation.

Not exact matches

«Rising interest rates and stricter mortgage requirements have reduced home buyers» purchasing power, particularly for those at the entry level of our market,» Jill Oudil, president of the Real Estate Board of Greater Vancouver, said in a statement.

They include upwards revisions in economic forecasts, expectation of monetary tightening, rising real and nominal long - term interest rates, fiscal stimulus on a huge scale in a full employment economy, rising protectionism that should choke off import flows, and tax reform directed at reducing capital outflows and increasing capital inflows.

First, substantial direct or indirect wealth transfers from the state sector to Chinese households will unleash a surge in household consumption as household income rises (and because the interest on bank deposits is an important source of income for most middle and lower middle class households, if the authorities reduce interest rates, as struggling borrowers are demanding, China actually moves in the wrong direction).

Increases in interest rates mean costs rise, profits fall and share prices are reduced.

Rising interest rate is the biggest risk for CubeSmart, which reduces the attractiveness of investing in REITs.

In contrast, the Bank of Korea reduced interest rates by 25 basis points in November, for the second time in six months, reflecting continued weak domestic demand and a rising exchange ratIn contrast, the Bank of Korea reduced interest rates by 25 basis points in November, for the second time in six months, reflecting continued weak domestic demand and a rising exchange ratin November, for the second time in six months, reflecting continued weak domestic demand and a rising exchange ratin six months, reflecting continued weak domestic demand and a rising exchange rate.

Given term premium suppression (via QE) reduced volatility and induced investors to buy risky assets to boost returns, a sustained rise in long - term interest rates would give investors more options to achieve yield targets, thus making risk assets appear less attractive and ultimately erode demands for yield and tighten financial conditions.

In this environment, rising interest rates could spell trouble for indebted consumers who have already reduced their spending (as evidenced by the recent slump in retail salesIn this environment, rising interest rates could spell trouble for indebted consumers who have already reduced their spending (as evidenced by the recent slump in retail salesin retail sales).

When liquidity in the financial system is reduced, interest rates tend to rise and / or stay high.

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.

In addition we have rising interest rates, crowding out of the private sector, reduced business confidence, and declining economic growth.

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.

«The theory is when you're in a rising interest rate environment, that's typically a signal of a stronger economy, and that reduces default risk and improves the relative performance of those non-core fixed - income assets,» he says.

By swapping those assets that are currently trading below the purchase price (due to a rise in interest rates, deteriorating credit situation, etc.) you can reduce or eliminate the capital gains you would otherwise have paid on your other profitable transactions in the current tax year.

But like the Haqs, Balfour has built in a buffer: if rising interest rates put pressure on her, she could just reduce the optional mortgage payments she's making now.

The leap in income was primarily due to reduced fee waivers, which were reversed as rising interest rates led to higher returns for money market funds.

«From a housing market perspective, tight inventory is boosting prices in many markets, and millennial homebuyers must now contend with rising mortgage interest rates reducing their buying power,» says Tendayi Kapfidze, chief economist at LendingTree.

While rising interest rates can reduce the value of future cash flows, inflation can in turn increase the value of physical property due to the fact that real estate is a hard asset.

While rising interest rates can reduce the value of future cash - flows, inflation can in turn increase the value of physical property due to the fact that real estate is a hard asset.

These Fed actions are unlikely to derail the moderate improvements in growth and employment, but rising interest rates will reduce mortgage originations and put a cap on house sales in 2017.