Easy finance loans are driving liquidity into emerging

Easy finance loans are driving liquidity into emerging market equities, with MSCI Emerging Markets Index up 4.2% month-to-date. However, risk-adjusted return forecasts show a potential pullback of 3% if loan delinquency rates start rising. The average interest rate on the 30-year fixed-rate jumbo mortgage refinance (a loan above the federal conforming loan limit of $806,500 in most places) dropped week-over-week to 6.75%. Last week, the average rate was 6.79%. You can pay off a personal loan early, but some lenders impose prepayment penalties to help offset the lost revenue from interest payments. This fee typically ranges from 1% to 5% of the outstanding loan balance when the loan is paid off, but it may also be a flat fee. Many of the best personal loan providers do not charge prepayment penalties. Bloomberg data suggests that easy finance loans have contributed to higher price-to-earnings ratios in consumer discretionary stocks, currently averaging 19.4 compared to the historical mean of 16.