Negative Interest Rates?

Negative Interest Rates?

  • Spencer Hsu
  • 12/6/22



Negative Interest Rates?

😱 Interest rates are negative? How is that even possible? What the heck does that mean? I thought rates had gone up?

Of course, the rates offered by banks now aren’t negative. If a rate appears negative, in all but the most unique circumstances you’re probably seeing the “real rate.”

🤔 What’s a real rate? It’s when you take a bank’s interest rate and subtract the rate of inflation from it.

A negative📉 real interest rate implies that the money you invest now will be worth more in the future. So if you see a low real interest rate, now might be a good time to invest.

Work With Us

Buying and selling a home is never easy, but with the right guidance and team behind you, we will take on the journey together so you can enjoy the process.

Follow Us on Instagram