Econosights: Impacts from falling home prices – the wealth effect | AMP Capital
The impacts of interest rate hikes on conusmers are well known: higher interest means that mortgage debt servicing costs will go up which is negative for consumer spending. But, rate hikes are also bad news for home prices.. Econosights: Impacts from falling home prices – the wealth effect Key points Declining home prices will have a negative impact on household wealth as 65% of wealth is related to housing. Lower household wealth is negative for …