Up, Down, Up, Down Interest Rate- So. Cal.

 

Here are some key interest rate change indicators for your information. 

For current listing or current solds in your area – we invite to visit our website at

www.WeSpeakRealEstate.com. 

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Things that may raise interest rates.

 

Consumer Price Index Rises

Indicates rising inflation.

 

Durable Goods Orders Rise

Pickup in business activity usually leads to increased credit demand.

 

Housing Starts Rise

Shows growth in economy and increased credit demand. Fed tightens money supply by

raising rates.

 

Leading Indicators Up

Signals strength in the economy leading to greater credit demand.

 

Personal Income Rises

The higher one’s income, the more consumed, prompting higher prices of debt securities.

 

Producer Price Index Rises

Indicates rising inflation. Demand for, and prices of, goods rises.

 

Retail Sales Fall

Indicates stronger economic growth. Fed may tighten money supply.

 

What will lower interest rates?

hat May Raise Interest Rates

Gross National Product Falls

Reflect a slowing national economy. Fed loosens money supply by lowering rates.

 

Industrial Production Falls

Indicates slowing economic growth. Fed loosens money supply by lowering rates.

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Inventories Up

Indicates a slowing economy since sales are not keeping up with production.

 

Oil Prices Fall

Reduces upward pressure on interest rates, thereby enhancing prices of debt securities.

 

Precious Metal Prices Fall

Reflects decreased inflation. Demand for inflation hedges falls.

 

Unemployment Rises

Indicates stronger economic growth. Fed may tighten money supply.

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fico scoring breakdown

Looking to improve your credit score or maintain a high fico score. Understand how Equifax, TransUnion, Experian.  Rate your credit and generate a fico score.

35%Payment History– Do you pay on time?

30%Amount owed-Balances close to the credit limit.

15%Length of credit– How long have you had credit?

10%New credit-Do you have to much new credit?

10%Type of credit-Mortgage, credit, installment loans.

5 Factors That Decide Your Credit Score

Credit scores range between 200 and 800, with scores above 620 considered desirable for obtaining a mortgage. The following factors affect your score:

1. Your payment history. Did you pay your credit card obligations on time?   If they were late, then how late? Bankruptcy filing, liens, and collection activity also impact your history.

2. How much you owe. If you owe a great deal of money on numerous accounts, it can indicate that you are overextended.   However, it’s a good thing if you have a good proportion of balances to total credit limits.

3. The length of your credit history. In general, the longer you have had accounts opened, the better.  The average consumer’s oldest obligation is 14 years old, indicating that he or she has been managing credit for some time, according to Fair Isaac Corp., and only one in 20 consumers have credit histories shorter than 2 years.

4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay them promptly.

5. The types of credit you use. Generally, it’s desirable to have more than one type of credit — installment loans, credit cards, and a mortgage, for example.For more on evaluating and understanding your credit score, visit www.myfico.com