Tracking Private Loan Rate Trends

The private loan rate trends for personal loans can be tracked in order to determine patterns and opportunities for borrowing. Private loan rates mirror the prevailing interest rates that are offered for a variety of personal loans, including loans for small businesses, homes, autos and personal lines of credit.

Interest Rate Movements

During periods of widely-recognized high inflation, interest rates rise correspondingly. Interest rates also normally move opposite of the stock market so that typically when stocks are down, interest rates are up and vice versa. Private loan rates move in a predictable manner and knowing how to track these rates provides you with some advantages with respect to applying for a loan.

Where to Search

Many websites provide consumer loan and personal loan rates. These websites provide a mechanism for searching for loan rate trends and tracking these rates over a period of 1, 3, 5 or even 10 years.

Identifying Loan Types to Track

The research that is involved in tracking private loan rates begins with identifying a private loan type that you need information. Mortgage, small business, auto and other forms of personal loans each have their own rates and trends, although these loans react in concert with the prevailing CPI and changes in the stock market.

Once you have identified the personal loan rate that you wish to follow, you should set up a spreadsheet to follow the trends associated with the loan. Tracking this trend should show you the relationship between interest rates and the rise and fall in the stock market during the same period.

Private Loan Trends

Private loan rate trends have been lower but are poised to increase over time. This provides a window of opportunity for borrowers to take advantage of lower rates and make a primary or secondary purchase. The cost of money is low, which makes loans more attractive as an alternative to using your own cash flow to fund a major purchase.

You will see in your trend tracking predictable patterns in the movement of the private loan rates and the peaks and troughs that occur over time. The length of these spans gives you an indication of the time you need to make a decision to pursue a private loan.

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