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When we observe interest rates in the financial press, do we see nominal or real rates?...

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Finance

When we observe interest rates in the financial press, do we seenominal or real rates? Suppose you are in the process of applyingfor a 30-year fixed-rate mortgage. Which rate is more relevant toyou? Why?

Now suppose you are planning to invest in a 30-year TreasurySTRIPS. Which rate is more relevant to you? Why?

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When an investor oberves the interest rates in the financial press then such an investor looks at the nominal interest rate as the real interest rate observation is not general Real interest rate refers to the rate of interest which does not have effect of inflation that is the rate from which the effect of inflation has been removed In an economy the interest rates are shown at nominal level which includes the effect of    See Answer
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When we observe interest rates in the financial press, do we seenominal or real rates? Suppose you are in the process of applyingfor a 30-year fixed-rate mortgage. Which rate is more relevant toyou? Why?Now suppose you are planning to invest in a 30-year TreasurySTRIPS. Which rate is more relevant to you? Why?

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