Six-month Surge in One Year Fixed Interest Rates

Article posted at The Market Oracle http://www.marketoracle.co.uk/Article60440.html The Market Oracle – Financial Markets Analysis and Forecasts – CLICK TO READ ARTICLE

UK Base Rate Speculation Causes Fixed Interest Rates to Rise

Article posted at The Market Oracle http://www.marketoracle.co.uk/Article60431.html The Market Oracle – Financial Markets Analysis and Forecasts – CLICK TO READ ARTICLE

Higher US Interest Rates May Force Higher Inflation Rates

Article posted at The Market Oracle http://www.marketoracle.co.uk/Article60222.html The Market Oracle – Financial Markets Analysis and Forecasts – CLICK TO READ ARTICLE

Whoever Gets Appointed to the Fed, Expect Negative Rates and QE in the Next Crisis

Janet Yellen’s current turn at the chair expires in February. Who will be running the Fed next year, and will it matter? How will new leadership change anything? Trump could renominate her but hasn’t yet announced a decision or even given a hint. This is speculation, but President Trump had some kind words for Yellen […]

Stocks, Bonds, Interest Rates, and Serbia, Camp Kotok 2017

I went to Camp Kotok, an invitation-only gathering of economists, market analysts, fund managers, and a few journalists. I go every year, and I always learn more than I can manage to remember. It’s a three-day economic thought-fest (and more rich food and wine than is good for me or anyone else at the camp). […]

The Death of Abenomics; the Rise of Interest Rates

Article posted at The Market Oracle http://www.marketoracle.co.uk/Article59887.html The Market Oracle – Financial Markets Analysis and Forecasts – CLICK TO READ ARTICLE

Buy-to-let Mortgage Interest Rates Still Falling

Article posted at The Market Oracle http://www.marketoracle.co.uk/Article59818.html The Market Oracle – Financial Markets Analysis and Forecasts – CLICK TO READ ARTICLE

368 TRILLION Reasons the Fed Won’t “Normalize” Rates

Article posted at The Market Oracle http://www.marketoracle.co.uk/Article59809.html The Market Oracle – Financial Markets Analysis and Forecasts – CLICK TO READ ARTICLE

Silly Money Printing, Negative Real Rates, & Restricted Supply Form “Great Scenario for Gold”

Article posted at The Market Oracle http://www.marketoracle.co.uk/Article59798.html The Market Oracle – Financial Markets Analysis and Forecasts – CLICK TO READ ARTICLE

First-time Home Buyers: Wave Goodbye to Record Low Interest Rates

Article posted at The Market Oracle http://www.marketoracle.co.uk/Article59752.html The Market Oracle – Financial Markets Analysis and Forecasts – CLICK TO READ ARTICLE

One-year Fixed Savings Interest Rates Hit Highest Level Since Base Rate Cut

Article posted at The Market Oracle http://www.marketoracle.co.uk/Article59636.html The Market Oracle – Financial Markets Analysis and Forecasts – CLICK TO READ ARTICLE

UK Mortgage Inetrest Rates Reach New Lows Despite Growing Economic Pressures

Article posted at The Market Oracle http://www.marketoracle.co.uk/Article59627.html The Market Oracle – Financial Markets Analysis and Forecasts – CLICK TO READ ARTICLE

Shale Oil & Gas Production Costs Spiral Higher As Monstrous Decline Rates Eat Into Cash Flows

Article posted at The Market Oracle http://www.marketoracle.co.uk/Article59133.html The Market Oracle – Financial Markets Analysis and Forecasts – CLICK TO READ ARTICLE

Mind the Mortgage Gap – High LTV Interest Rates Soar

Research from Moneyfacts.co.uk reveals that despite average mortgage rates falling across the market, the gap between the 60% loan-to-value (LTV) bracket and the highest LTV band (95%) has expanded. Statistics show the divergence has grown by 0.31% in just six months. The Market Oracle

US Housing Market Mortgage Delinquency Rates Increase & 3X ETFs

Delinquency rates in Single Family Residential Mortgages and other Consumer Loans began to climb through the later half of 2016 and early 2017.  The timing of this delinquency rate increase coincided almost identically with the Fed increases in their Funds Rate.  Additionally, commercial loan origination stalled for the first time since 2008-2011 (prior to that […]

Negative Interest Rates are Becoming a Reality for Savers

Data from Moneyfacts.co.uk can reveal that the savings market is showing encouraging signs of improvement. The number of rate rises now outweighs the number of reductions for the third month running. In the month of March, Moneyfacts recorded 163 savings rate rises, with some rates increased by as much as 1.20%. This dwarfs the 65 […]

UK Help to Buy Vacuum Contributes to Mortgage Interest Rates Rise

Moneyfacts UK Mortgage Trends Treasury Report data, not yet published, highlights that the average two-year fixed rate at 95% loan-to-value has increased by 0.25% since January 2017, bringing the figure back to around the same rate it was a year ago. The Market Oracle

Negative Real Interest Rates to Drive Gold Price Higher

At its March meeting, the Federal Reserve raised interest rates by 0.25%. In doing so, it hiked rates for only the third time since 2006. However, in a strange turn of events, the Fed’s move was perceived as a dovish one by the markets. That’s because even with inflation at its highest level since 2012, […]

Low Interest Rates Helping Australia Transition from the Mining Boom

Australia’s transition from its reliance on mining exports to other sectors appears to be gathering pace as more businesses continue to take advantage of the low interest rates. The Reserve Bank of Australia reduced the base interest rate, popularly referred to as the cash rate, twice last year from 2% to 1.75% and again to […]

US Interest Rates Up Quarter Percent, Stock Market Loved It

Fed Yellen raised interest rates a quarter percent today and the stock market loved it. The Nasdaq 100 popped early, and then pulled back, but the S&P 500 kept going up all morning. By midday, just before the FOMC, they pulled back just a little going into that meeting, and then exploded. They pulled back […]

Stocks Get Close To Record High Again As Fed Hikes Interest Rates

Briefly: In our opinion, speculative short positions are favored (with stop-loss at 2,410, and profit target at 2,200, S&P 500 index). Our intraday outlook is bearish, and our short-term outlook is bearish. Our medium-term outlook remains neutral, following S&P 500 index breakout above last year’s all-time high: Intraday outlook (next 24 hours): bearish Short-term outlook […]

Are UK Savings Interest Rates Finally Starting to Rise? Best Cash ISA 2017

According to some analysis there are emerging signs of life in the UK savings markets, so as the tax year draws to a close I take a look at if the Cash ISA market is finally starting to offer some hope to Britain’s savers after a near 5 years of a catastrophic downward death spiral […]

Gold, Second Fed Hike and Interest Rates

The narration of reflation and ‘Great Fiscal Rotation’ imply that the Fed will hike interest rates in a more aggressive way in a response to accelerated growth and higher inflation. We have already covered the Fed’s likely policy in 2017 in the previous edition of the Market Overview, but let’s discuss the impact of higher […]

Gold: Short End US Rates Matter More Than Long End Real Yields

In the years following the GFC, short end yields in the US were contained for an extended period of time as the Fed committed to keeping rates on hold. Given the static nature of the short end, and the shift of monetary policy implications further out the curve through QE programs, long end US rates […]

Here’s Proof Rising Rates Are Good for Gold

John Grandits writes: When the Federal Reserve raised interest rates in December—and then laid out a plan to do so three more times in 2017—theory suggested gold should fall. As gold is a non-yielding asset, the cost of holding it increases as rates rise. However, theory doesn’t always convert into practice. Since the Fed’s decision, […]

UK Long-term Fixed Savings Bond Interest Rates Rise

Moneyfacts UK Savings Trends Treasury Report data, yet to be published, highlights that the average long-term fixed bond rate has increased by 0.05% to 1.30%, the first time Moneyfacts has seen a significant rate rise of 0.05% or more since October 2015. The Market Oracle