Real interest rate

Over 2200 Glossary Terms

Real interest rate

Real interest rate represents the rate earned by an investment, discounted for inflation. Say, for example, that an individual purchases a bond paying 6 percent interest, and the inflation rate is 5 percent. The real interest rate is 1 percent, or the portion of the rate that's in excess of the inflation rate.

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Loan Type Today
30 yr fixed 4.83
15 yr fixed 4.39
5/1 ARM 3.69

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