Market Volatility

Introduction

The stock market is volatile and unpredictable. Any investor worth their salt knows that. But there are also times when it seems like the market is even more volatile than usual. Many economists and financial experts have tried to measure and predict volatility, but they haven’t really come up with any reliable method of doing so.

In this article I’ll go over what causes volatility in the stock market, how we can measure it, and why it all matters for investors like you and me who are trying to make money in today’s markets.

Interest rates are likely to keep rising as the year goes on.

Interest rates are likely to keep rising as the year goes on, and here’s why:

• Interest rates are tied to economic growth. When the economy is booming and people start buying more stuff, it means there’s more demand for money. That in turn drives up interest rates as people compete for a limited supply of cash.
• Interest rates are tied to inflation (the rate at which prices rise). If you have an apartment in New York City, it’s probably costing you more money every day than when you first rented your apartment; that’s because inflation has increased since then. Inflation can be caused by things like government policies or global events—but it also comes from changes in supply-and-demand dynamics on the market itself.(1) So if something like oil becomes scarce due to a natural disaster or global conflict…you guessed it: higher prices!(2)
• Interest rates are tied to the Federal Reserve (the US central bank). The Fed controls monetary policy through things like setting interest rates and making investments into securities markets—and their decisions have serious implications for our lives as consumers because they affect things like job opportunities and income levels throughout society.(3)

The housing market depends on consumer confidence, which is tied to interest rates.

The housing market depends on consumer confidence, which is tied to interest rates. As is well-known, when interest rates go up, consumers’ willingness to purchase homes goes down and vice versa. For example, if you’re thinking of buying a house and see that your mortgage payments will increase by 1% annually over the next five years due to higher interest rates, you might reconsider purchasing the home because it would make more sense financially not to buy one right now (or at least wait until interest rates go down).

If consumer confidence goes down because people believe that their wages will be lower in the future or because they don’t think it’s safe for them to invest in something like a house purchase until a recession has passed (i.e., when there are no more economic problems), then this may cause fewer people who want houses right now but can’t afford them under normal conditions; however: they might still buy those properties later on after their incomes rise again or after some time passes without any major changes happening within our economy; hence: we won’t see immediate effects from these changes happening right away since some people may decide not even bother trying anymore until things get better again!

This rate increase may impact home buyers’ budgets.

If you’re planning to buy a home within the next year, keep in mind that rates are increasing. This will have an impact on your monthly payments and budget.

It’s important to understand how much you can afford for a monthly mortgage payment before committing yourself to one. If you’re unable to come up with the money required by a larger rate increase—even if it’s just $50 or $100 more per month—you may need to consider another option, such as moving into an apartment until you have enough savings built up or taking out a smaller loan in order to avoid overspending on housing costs at this time.

Some homeowners may choose to refinance their mortgages when rates go up.

If you have an adjustable-rate mortgage, or ARM, and your rate is set to go up soon, refinancing your loan can be an effective way to reduce monthly payments.

It’s also a good option if you want to pay off higher interest rate loans. For example, if you had a home equity line of credit with a 5% interest rate and want to use that money for something else (like buying stock), refinancing into a fixed-rate loan could lower your monthly payment by as much as $150 per month.

If you’re carrying high-interest credit card debt and want help paying it off faster without being hit by even more interest charges, refinancing may allow you to pay down the balance sooner than expected—saving up to thousands in interest payments over time.

Young people asking for their parents to help them with down payments could be negatively impacted by higher interest rates.

The Federal Reserve has raised interest rates three times in the last year, and is expected to hike rates at least one more time before the end of 2019. At this point, you may be wondering how your finances are going to be affected when loans get more expensive.

The good news is that most young people don’t rely on credit cards or other forms of debt; if they do have debt, it’s typically from student loans—which are cheap and almost always paid off within ten years—or a mortgage on their first home. The bad news is that if you want to buy a house or start saving for retirement, you could see higher interest rates affect how much money you can borrow from others and yourself.

Accordingly, young people who are interested in buying property should take steps now so that they can save up enough money for down payments and other closing costs by the time they’re ready to buy (and hopefully avoid having their parents foot all but 1% of the bill). If interest rates go up significantly after they’ve already purchased the house, they’ll still want some cash reserves left over so there aren’t any surprises with monthly payments later on down the line when homeowners might need some extra cash unexpectedly due to unforeseen circumstances like job loss or illness/injury requiring medical care not covered under insurance premiums paid monthly before each paycheck arrives every two weeks.”

Rates are still historically low, but may cause some people to reconsider buying a home right now.

Rates are still historically low, but they may cause some people to reconsider buying a home right now. Some buyers might be tempted by the lower rates and refinance their mortgages to get a lower payment. Others could choose to wait until rates go down again. And still others may decide that it’s not financially feasible for them to buy at this time because of the higher monthly costs associated with owning instead of renting.

Lower down payment options and more relaxed lending standards may make it easier for some people to buy a home.

• Lower down payment options and more relaxed lending standards may make it easier for some people to buy a home. This can happen when the Dow Jones Industrial Average dips below 8,000 points…
• Some people may be able to buy a home now. Others may not be able to buy a home at all.

Conclusion

The housing market has been heating up recently, and rising rates could be a sign that it’s cooling off. However, the effects of this rate increase will vary depending on the buyer’s financial situation and goals. If you are looking to buy a home but don’t have enough saved up for a large down payment, now would be the perfect time to explore your financing options or talk with a real estate agent about how much money you can get from other sources like grants or loans from family members.