RateAPY

Economic Indicators Hint That Interest Rates May Remain Low

Posted by: RateAPY Bank Rates News
January 20th, 2010

Interest rates on financial tools, such as mortgages, money market accounts, savings accounts, and certificates of deposit, will likely remain low for an extended period of time. This news comes after leading economic indicators published recently show signs of a weak economy. The indicator information includes:

• Housing starts slid by 4.0% in December, a bigger decrease than the expected dip of 0.2%.
• HAHB builder confidence index declines to 15 in January. A measure of 50 or more indicates builders are more optimistic about business prospects than they are pessimistic.
• U.S. Treasuries rebounding again as risk aversion returns on news that China may have overstimulated its economy and caused bubbles in the banking sector.
• The Producer Price Index (PPI), including the Core PPI, demonstrates that inflation is not a concern at this time.
• Unemployment numbers continue to worry the consumer and prevent many from the spending necessary to boost the economy.