San Diego, CA (PRWEB) July 23, 2013
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. A recently posted video from LoanLove.com can help borrowers to understand the indicators that financial experts use in their mortgage interest rates prediction so that they will be able to make the best decision when it comes to locking in their loan rate.
The video’s host says: “If you have been watching any financial news at all you’ve probably noticed interest rates climbing like crazy lately and you’re probably wondering – will interest rates keep going up or will they go down?”
As the video states rates have been rising which has been a cause for concern for many home buyers and owners; especially since last month’s sudden interest rate increase which caught almost everyone off guard. However, interest rates are starting to stabilize again and now people are wondering whether they are expected to go up or down and how financial experts predict which way they will go. The video continues by explaining:
“The short answer and most probably scenario is – Yes, rates will keep going up and here’s why:
Three of the biggest indicators that affect interest rates are:
- The GDP, (or Gross Domestic Product)
- CPI (Consumer Price Index)
- and Payroll Employment
Without getting too technical (just to understand the big picture) I’ll save you the headache of learning macroeconomics. The big picture is this: All of this alphabet soup – GDP, CPI and PE (or Payroll Employment) – are indicators of how well our economy is doing. All three of these indicators are tied to inflation and when the Federal Reserve expects inflation they raise interest rates. When our economy is stagnant they lower interest rates.”
The GDP, CPI and payroll indicators are coincident indicators, meaning they respond quickly to shifts in the economy. This is in contrast to the unemployment rate which lags behind the economy; shifts in unemployment do not have an immediate impact on the economy and their effect on inflation is delayed. LoanLove.com has written many articles on this topic and those who would like to know more can simply visit the “Interest Rates” category on the website’s home page.
The video ends with some advice for borrowers: “So, what does all this mean? Well, if you’re interested in buying or refinancing a home, time is of the essence. All signs indicate interest rates will keep going up as the U.S. economy strengthens and threats of inflation increase. In other words, delaying your purchase or refinance can easily cost you thousands of dollars over the life of your loan. Lock in your interest rate today and you’ll be glad that you did.”
For more information on mortgage interest rate predictors, please visit LoanLove.com.