In doing some research we found a good article on About.com on why interest rates are so important to the economy. Here are some highlights from the article that well help us all learn more about interest rates:
"Interest rates control the flow of money in the economy. High interest rates curb inflation, but also slow down the economy. Low interest rates stimulate the economy, but could lead to inflation. Therefore, you need to know not only whether rates are increasing or decreasing, but what other economic indicators are saying.
The most direct impact interest rates have is on your home mortgage. If interest rates are relatively high, your loan payments will be greater. If you are buying a home, this means you can afford a less expensive home. Even if you are not in the market, your home value will not rise and could even decline during times of high interest rates.
On the other hand, high interest rates curb inflation. This means the price of other goods like food and gasoline will stay low, and your paycheck will go further. If you were smart enough to lock in a fixed-interest loan at a low rate, your income will stretch even more."
If you want to learn more about interest rates or speak with a Biltmore preferred lender please contact us and we can put you in touch. If you are thinking about purchasing a new home then the current low interest rate situation makes it a great time to buy!
Built For Life!
- Team Biltmore
"Interest rates control the flow of money in the economy. High interest rates curb inflation, but also slow down the economy. Low interest rates stimulate the economy, but could lead to inflation. Therefore, you need to know not only whether rates are increasing or decreasing, but what other economic indicators are saying.
The most direct impact interest rates have is on your home mortgage. If interest rates are relatively high, your loan payments will be greater. If you are buying a home, this means you can afford a less expensive home. Even if you are not in the market, your home value will not rise and could even decline during times of high interest rates.
On the other hand, high interest rates curb inflation. This means the price of other goods like food and gasoline will stay low, and your paycheck will go further. If you were smart enough to lock in a fixed-interest loan at a low rate, your income will stretch even more."
If you want to learn more about interest rates or speak with a Biltmore preferred lender please contact us and we can put you in touch. If you are thinking about purchasing a new home then the current low interest rate situation makes it a great time to buy!
Built For Life!
- Team Biltmore
