Concern over rising interest rates is growing, as more Americans expect rates to increase to the disadvantage of personal finances and the stock market, according to a recently released survey by Bankrate.com. Forty-nine percent of those surveyed are concerned about rate hikes this year, compared to 41 percent who were concerned in 2016. Survey respondents age 26-51 were more concerned about rising interest rates than those in other age groups.
“More Americans are concerned that rising interest rates could be the market’s undoing,” said Greg McBride, chief financial analyst for Bankrate.com, in a statement on the survey.
The Federal Reserve, which last raised the key interest rate in December, anticipates raising the rate three times this year.
A recent report by realtor.com® suggests higher mortgage rates, which are indirectly impacted by interest rates, could be scaring off first-time homebuyers with plans to purchase this spring.
“Higher rates make qualifying for a mortgage and finding affordable inventory more challenging,” said realtor.com Chief Economist Jonathan Smoke. “The decline in the share of first-time buyers since October suggests that the move-up in rates is discouraging new homebuyers already.”
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