Elliot Eisenberg, Chief Consulting Economist to American Pacific Mortgage, is here to help explain what interest rates are and how they work in your December 1, 2020, economic update. Elliot explains that interest rates are the price of money. Just like prices, they can go up and down all the time, which explains how the rise and fall of money follows the same kind of supply-and-demand situation. Usually, the price of money doesn’t dramatically change on a regular basis. The central bank’s job is to better control the price of money so that it can work beneficially for our economy. When things are bad, that is when the central bank will “inject” money into the economy to raise the supply and make interest rates fall so the cost of money gets cheaper. However, when our economy is good, the federal government takes money out of the system, which then causes interest rates to rise. So, this means that economic conditions are what drives the behavior. Elliot covers all of this and more in this informational video. Thanks for watching! 🤝 Connect with an APM Loan Advisor near you by going to http://bit.ly/APMLoanAdvisor or visit us at https://www.apmortgage.com Resources: 🏠 Explore Home Loans: https://www.apmortgage.com/explore-home-loans 📄 About APM: https://www.apmortgage.com/about-american-pacific-mortgage 🖩 Mortgage Calculator: https://www.apmortgage.com/loan-calculators 🖩 Refinance Calculator: https://www.apmortgage.com/loan-calculators 🖥️ Blog: https://www.apmortgage.com/blog #interestrates #economics #economy