Factors That Affect The Fluctuation of Interest Rates by https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5 Made by: Tuan Vu Le & Harin Peter Sri Chandrasekara en-us 2021-03-28 23:36:10 UTC 2021-03-29 18:08:05 UTC hello@padlet.com http://dollarsandsense.sg/wp-content/uploads/2016/12/Interest-Rates.jpg What to expect harinpetersrichandrasekara https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5/wish/1362214576 Welcome to our Padlet! 
Today we have the opportunity to explore the world of interest rates. Interest rates are something that we all will come across multiple times across our financial side of life. On this padlet we are going to explore how and what influences these interest rates and how they behave to these changes. We are seeking easy to understand content and we hope that you find our research interesting and helpful!

]]> 2021-03-28 23:48:33 UTC https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5/wish/1362214576 Website #1 harinpetersrichandrasekara https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5/wish/1362225516 An interest rate is the expense of acquiring cash. As interest rates are a critical factor of the pay you can bring in by loaning cash, of security estimating and of the sum you should pay to acquire cash, it is significant that you see how winning financing costs change: fundamentally by the powers of market interest, which are additionally influenced by swelling and money related strategy. 
We found this interesting as this keeps the economy moving by urging individuals to get, to loan, and to spend. However, winning financing costs are continually changing, and various kinds of credits offer distinctive interest rates. ]]> 2021-03-28 23:56:30 UTC https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5/wish/1362225516 Website #2 harinpetersrichandrasekara https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5/wish/1362228927 The US central bank (Fed) principally controls the inventory of cash by purchasing or selling government securities through a cycle known as open market activities. The Fed has kept the government supports rate low as of late trying to animate monetary development. Basically, they mean to consistently be simple about changing loan fees, and endeavor to keep loan costs on our monetary items serious.

We found this interesting because in the event that you're paying or procuring revenue, a 'high loan fee' can either be nervousness prompting or an incredible monetary device. 
]]> 2021-03-28 23:58:49 UTC https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5/wish/1362228927 Website #3 harinpetersrichandrasekara https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5/wish/1362233256 There are around 26 unique factors that go into citing intertest rates: credit score, credit history, employment type and income, loan size, loan type, loan-to-value, length of term, payment frequency, property type, co-borrowers, debt ratio, documentation available, escrow preference, closing date, occupancy, type, residency, available assets, asset seasoning, housing ratio, improvements needed, employment history, relocation, seller contributions, gifts, cash-out, combined loan-to-value.

We found this is essential, because for example: One of the biggest concerns that soon-to-be-homeowners have when it comes to applying for a loan is the interest rate that they'll be given. In all honesty, most of that depends on current market conditions. However, there are a few things that you can do to help yourself secure the best rate possible.
]]> 2021-03-29 00:01:34 UTC https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5/wish/1362233256 Video #1 harinpetersrichandrasekara https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5/wish/1362309119 This video is extremely easy to understand and interpret. The main focus of this video is based on The Federal Reserve (FED) and their impact on the interest rates. The FED plays a very important role here by determining the level of interest rates based on whether lots of people are out of work or not. If lots of people are out of work, the FED then reduces the levels of interest rates in the country. This is done to promote job creation. When interest rates are reduced, it means that its cheaper for people to take out loans, which means that they are willing to spend more money. This increased spending will fuel the economy and lead to job creations which boosts the economy. 
On the other hand, if inflation is high, the FED will slow down spending by increasing the interest rates. This means its more expensive to take out loans and in turn results in a reduction of money spent. This will cause sellers to reduce their prices and therefore, stabilise the high prices and high spending habits. 

I chose this video because its such an easy explanation, even though its more complicated, this video gives its viewers and easy understanding the role of the FED has on the interest rates ]]> 2021-03-29 00:39:37 UTC https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5/wish/1362309119 Video #2 harinpetersrichandrasekara https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5/wish/1362315134 This video focuses on firstly, increasing our knowledge of what an interest rate is, and what the factors are that determine them. 
According to this author, interest rates are the cost of borrowing money, as per the historical definition of the term. 
This video then moves on to focus on five factors which affect the rates which are, inflation, growth rate per capita, exchange, risk of credit default, economic assumption, liquidity and supply & demand.

We chose this video because the author explains very well the definition of interest rates and the factors which determine their fluctuations. The author does a very good job of making it easy to understand and absorb the information.]]> 2021-03-29 00:42:06 UTC https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5/wish/1362315134 Video #3 harinpetersrichandrasekara https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5/wish/1362315496 This video is one of the most interesting videos we have researched on. This video strays beyond the normal factors which other videos tend to talk about. The main focus of this video is about the new tools which the FED use to determine and influence these rates. The author talks about The Federal Reserve, big banks such as J.P Morgan and the home loan banks and how they borrow money from each other which determine the interest rates. The new tools include the IOER (Interest On Excess Reserve) and the RRP (Reverse Repo Program).

We chose this video because we believe this is really interesting and critical knowledge on how the banks interact with each other which affects the interest rates. Also, we found the new tools very interesting and we have never heard of them before. Hence, we thought it would be very valuable to our readers as well.  ]]> 2021-03-29 00:42:16 UTC https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5/wish/1362315496 Video #4 harinpetersrichandrasekara https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5/wish/1362318023 This video is another we found very interesting and different. The other videos talk about the usual factors whereas this video talks about how the supply and demand for bonds change and affect the interest rate. The video explains extremely well about the inverse relationship between the interest rates and bond prices. An interest rate of 0% results in a bond price of 1000 whereas an interest rate of 17% results in a bond price of 850. The video also shows a very interesting formula to calculate bond prices and interest rates. 

We chose this video because its different yet very relevant information and the information found on this video was very interesting to hear. Also, it gives us another perspective of how these interest rates change and what their domino affect is.]]> 2021-03-29 00:43:13 UTC https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5/wish/1362318023 Image #1 harinpetersrichandrasekara https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5/wish/1362322100 This image represents 7 factors which affect the interest rates. These factors are probably the most common yet most important factors which determine the interest rates.

We chose this image because the most critical information of the factors affecting interest rates are very clearly represented. ]]> 2021-03-29 00:44:45 UTC https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5/wish/1362322100 Image #2 harinpetersrichandrasekara https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5/wish/1362322347 In the modern world,  there are 4 factors which affect the level of interest rates. Ultimately, it is up to you whether you'd rather have a fixed interest rate or an adjustable one. If you choose an adjustable-rate option, however, you just need to be prepared for the probability that your payment will go up at the end of the introductory period.

We found this interesting because it is vital for investors to understand that interest rates change over time. And it’s equally vital to understand why they go up and down.]]> 2021-03-29 00:44:50 UTC https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5/wish/1362322347 Website #4 harinpetersrichandrasekara https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5/wish/1362328035 The housing market is one of the elements straightforwardly attached to loan fees so make certain to comprehend the condition of the market. Regardless of whether it is prosperous or battling ought to illuminate your home loan terms. The Bank of Canada impacts loan costs as a feature of their generally speaking financial and money related methodologies. This establishment can direct rates, including the short-term rate for banks, and can affect the Canadian conversion scale. Economy conditions change financing costs making the Provincial and Federal Government the greatest factor in deciding the loan fees.

We found this is essential, because realizing what can cause the financing cost to change can help you settle on the correct choice. This information can assist you with foreseeing how the loan fee may vacillate over the span of your home loan, and at last, plan for any changes.
]]> 2021-03-29 00:47:08 UTC https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5/wish/1362328035 Question 1 harinpetersrichandrasekara https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5/wish/1365202330 What did you learn about this topic that surprised you the most?
What we learnt about this topic that surprised us the most was how the FED or The Federal Reserve plays such a huge role in the fluctuation of the interest rate. The FED basically holds all the cards when it comes to what our interest rates are and depending on the situation of the current economy, buying and spending habits, earning potential and job creations, the interest rates are changed accordingly in order to have a balance.]]> 2021-03-29 17:58:35 UTC https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5/wish/1365202330 Question 2 tuanvule https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5/wish/1365206170 Provide a real-life example of how this topic is relevant or interesting for you?

When you mortgage a house, banks would utilize your credit score as a pointer of the fact that you are so liable to be fruitful at repaying your advance. They reason that on the off chance that you experience difficulty taking care of more modest advances like charge card obligation, you're bound to battle with squaring away bigger obligations like a home loan. 
Thus, it's totally significant to get your financial assessment in the most ideal shape before you apply for a credit. Start by focusing on making your installment on time each month. At that point, make certain to pay however much over the base installment as could be expected. At long last, give a valiant effort to restrict causing new obligation while you're dealing with squaring away existing obligation.
]]> 2021-03-29 17:59:30 UTC https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5/wish/1365206170 Question 3 harinpetersrichandrasekara https://padlet.com/harinpetersrichandrasekara/7l8f9mmaa2okbzn5/wish/1365226074 If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on?

The most important thing is the credit score. As per our research, the biggest determining factor of an interest rate is the credit score. If a person wants to take advantage of lower interest rates, he/she needs to make sure to take good care of their credit score.

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