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Understanding this Market’s Interest Rates

Apr 04, 2022 (0) comment

There is so much talk about high interest rates and inflation. Many still are unsure what it all means and where it all stem from. So, lets break it down.

In a nutshell: The interest rate affects inflation, and both are closely related. Inflation is the rate at which the general level of prices for goods and services rises. As for price increase, this leads to a fall in the currency’s purchasing power. It is necessary to keep the inflation rate within permissible limits for the smooth functioning of an economy. The interest rate is when the lender is lending funds to the borrower. The interest rate strongly impacts the country’s economy and has a major impact on stock and other investments. The interest rate is decided by considering two factors.

  • Capital availability – Capital is costly if a rate of interest is high.
  • If the interest rate is low, bank customers will not get sufficient return on their funds, demotivating customers to keep the amount in the bank. As a result, the bank will not have funds.

If money is cheap, people will get the motivation to get money in the market and as a result, the value of money will decrease. It will increase inflation. Inflation affects the price of goods and services. These prices are very important for the customer and the seller as they want secure inflation where prices are stable, or if in case it increases, it should increase gradually. The purchasing power of their currency should not affect. Price stability is very much needed for a healthy economy. Considering this interest rate is decided.

To control inflation, interest rates needed to change after a regular interval to maintain a healthy economy. Inflation vs. Interest rate has a vital role in a market. It helps the investor calculate how much return his investment needs to Inflation affects the price of goods and services. These prices are very important for the customer and the seller as they want secure inflation where prices are stable, or if in case it increases, it should increase gradually. The purchasing power of their currency should not affect. Price stability is very much needed for a healthy economy. Considering this interest rate is decided. Inflation vs. Interest rate has a vital role in a market. It helps the investor calculate how much return his investment needs to maintain his standard of living, and the investor invests in a product that gives a return more than inflation.

In this market today, one cannot really be picky about their interest rate. Rates are what they are. To shop rates once your in contract is the right of a buyer but at this point with the negotiations they’ve set to win the deal can actually delay the process risking them of being in breach of contract. Majority of buyers refinance after a year or two, giving further opportunity for lower rates as the market stabilizes. This market is not one to be rate conscious about. Choose a lender who provides the concierge level of customer service, communication and sets the correct expectations upfront.

We won’t sell you, We will get the loan closed. 

Presenting Customized Mortgage Solutions with Competitive Rates. I have been in the mortgage industry for over 17 years. Through my career I have perfected all aspects of the process including but not limited to processing, underwriting, and closing of residential loans. I am a performance-driven person. My team and I pride ourselves on transparency and communication throughout the process to all parties involved. We close on time and create raving fans one loan at a time through consistent A Class Customer Service and stress free experiences. Let me create a raving fan of you. Call me today and work with a true professional and my team of professionals dedicated on making the home buying experience an exciting and pleasurable one for everyone.

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