The rise in mortgage rates in the US is a worrying trend, as it hinders investment and creates problems for potential home buyers. Noted Robert Shiller, who lends his name to the S&P Case-Shiller Index, feels the increase is affecting home sales.
Professor Shiller, who teaches at Yale University and wrote the classic 'Irrational Exuberance' in 2000, told ET Now that predicting the direction of longer-term rates is very difficult.
How much of an impact does rising mortgage rates have on consumers?
Well, I think, there is a big psychological impact because people see these rising rates as a sign of trouble. That the govt is borrowing heavily and now the borrowing rates are going up. It also has an impact on people’s willingness to buy homes. And the oil price is the most significant down news offsetting this green shoot news
Do you expect rates to keep rising?
Ruin-Nation
11 months ago
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