Question

You are scheduled to receive $10,000 in one year. what will be the effect of an increase in the interest rate on the future value of this cash flow?

Answer 1

The present value of these cash flows is reduced by rising interest rates.  as soon as interest rates rise.

National 30-Year Mortgage Rate Trends Today

For homeowners looking to refinance, today's national average 30-Year Fixed Refinancing Rate is 5.40%, which is It's up two basis points. Last time corresponds to the week. On Monday, August 8, 2022, the national average effective interest rate for 30-year fixed rate mortgages is 5.610%.

Mortgage interest rates are constantly changing. Therefore, a good mortgage rate can vary greatly from day to day. Currently, suitable mortgage rates for 15-year term loans are low in the high 3% or 4% range, while suitable interest rates for 30-year mortgages are generally in the high 4% or low range. . 5% range.

Mortgage interest rates are currently around 5.5% and are expected to rise to 5.5% to 6% by the end of 2022. %

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