San Diego, CA (PRWEB) September 18, 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. In order to better help their readers understand how to find the best possible mortgage rates, Loan Love recently released an article that explains how mortgage interest rate predictions are made and how the average home loan borrower can use this information in order to find the best rates.
The article starts off by saying: "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. If you’re trying to determine if now is the best time to lock in a rate, you might want to take a look at the following three indicators to get an idea of how interest rates are likely to move. These 3 things are solid predictors for when interest rates go up or down."
The first predictor that the article mentions is the Gross Domestic Product report (GDP). This is a report that is released every quarter and has information about the dollar amount of all the good and services sold by companies within the United States during the previous quarter. This report serves as an indicator of inflation. If the report shows high numbers, interest rates are also expected to be higher. However, the reverse is also true: if the GDP shows signs of a stagnant economy, interest rates are usually kept low to encourage consumer spending.
The next factor that the article looks at it is the Consumer Price Index (CPI). This is a report that is released mid-month, every month and it is another of the primary indicators of inflation. In this report, analysts look at the shifting prices in thousands of products each month to see if prices are rising or falling overall. A rising a CPI is seen as a sign of inflation which will cause rates to rise and a lower CPI will have the opposite effect on interest rates.
Lastly, the article takes a look at Payroll Employment. Loan Love says of this indicator: "Released on the first Friday of every month, this indicator offers data on overall employment, hours worked and earnings. Like the other two indicators, high monthly increases or an increasing trend are considered inflationary, and can cause interest rates to rise; lower numbers often indicate a drop in rates."
These are the three biggest indicators of whether interest rates will rise or fall and those looking for the best home loan rates would be wise to keep an eye on them when they are looking for a good loan. For more information about interest rate predictors, please visit LoanLove.com for the full article.