Rising interest rates are predicted to slow consumption and investment growth in 2019, according to the latest U.S. economics data from Capital Economics.
According to Capital Economics, the 2-year Treasury yield increased to 2.82% from 2.63% at the beginning of September. The 10-year yield increased to 3.08%, climbing from 2.84%. Mortgage rates usually track in line with the 10-year Treasury, meaning mortgage rates are likely to continue rising as well.
Notably, the Federal Reserve is expected to hike rates two more times this year and two more in 2019.
The increase in market interest rates is already contributing to higher borrowing costs for households and businesses.
This is affecting the housing industry, as it was revealed that despite an…