Interest Rate Predictions - LoanLove.com Examines The 3 Biggest Indicators That Affect Current Rates
SAN DIEGO, Sept. 19, 2013 /PRNewswire-iReach/ -- LoanLove.com is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. Loan Love understands loan borrowers and their troubles with fluctuating interest rates of today; Current interest rate predictions can be tricky for many customers to tackle while taking out a loan. A new Loan Love article resolves many of the issues on whether interest rates will rise or fall by giving the three main predictors for mortgage interest rates. These prediction tips can help the ordinary loan borrower make the best out of these interest rates.
The article, titled "Will Interest Rates Go Up Or Down? The 3 Big Indicators" begins by stating "Especially in recent years, it seems like the news is always full of stories about the economy and the indicators that help evaluate it. Although it may seem these news stories are intended to do little more than cause anxiety (or boredom), in fact, these indicators can give consumers a fairly good idea of whether interest rates are going to rise or fall – and that can be very valuable information to anyone interested in buying or refinancing a home." Even with the relatively low interest rates, the article insists that every consumer should look for three signs to get a general idea of how interest rates are likely to flow.
One of the indicators for where mortgage interest rates will go is the Gross Domestic Product (GDP) in the market. Released every quarter in a year, the GDP is a reflection of the dollar amount on all good and services made or sold by companies in the U.S. during the previous quarter. In most cases the economy is showing growth of around 2.6% per year. This is generally an indicator for inflation in the market which can lead to interest rates rising. On the other hand, lower growth will often be followed by decreasing interest rates and bring about consumers being encouraged to spend more.
Second, loan borrowers should become more familiar with the Consumer Price Index, or CPI for short. "Released around the middle of each month, the CPI is one of the primary indicators of inflation. To determine the CPI, analysts look at the price of thousands of products within the last month to determine how those prices have shifted. When the CPI is high or there's an overall increasing trend in the CPI, that's considered an inflationary indicator, which can cause interest rates to rise. Conversely, a lower CPI can result in a drop in interest rates" reads the Loan Love article.
The article gives one last tip for determining mortgage interest rates – Checking the payroll employment. The payroll employment is released on the first Friday of every month and entails information such as data on the overall employment and the total earnings and hours worked. Following a similar pattern like the other two indicators, a monthly increase can result in inflation, while a monthly decrease can lead to a drop in mortgage interest rates.
All these indicators, as the article mentions are coincident indicators. What this means is that they respond fast to the changes in the economy, unlike the unemployment rate which reacts slower compared to these three indicators and thus, will not have as much of an impact on economy initially. Knowing these three indicators can help loan borrowers predict and plan ahead and stay on top of the mortgage interest rate trends and not fall behind.
To learn more about interest rate predictions and the article, please visit LoanLove.com
Media Contact: Kevin Blue, LoanLove.com, 949-292-8401, firstname.lastname@example.org
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