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Rising Interest Research Paper

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In the past few days, the stock market has taken a bit of a plunge and concerns have been surfacing around the rising interest rates. Many experts are predicting that rates will continue to rise in the coming weeks. Recently, the economy has been experiencing increasing inflation which plays a critical part in the rising interest rates being experienced. Before starting this essay, I read many different recent news articles discussing the rising interest rates, the falling stock market, inflation, and the economy. These articles helped me gain knowledge on the subjects and form my own opinions and concerns on these topics. As I observed and read about the economic changes currently happening, it raised my concerns about the current economy. Rates have been rising rapidly in a few weeks times, which in the past, have taken months to rise by that amount. Overall, these rising interest rates will be poor for the economy. According to an article in The Washington Post, mortgage rates are currently rising rapidly and sitting at their highest rate in more than a year. Rising interest rates will potential have a negative impact on the real estate markets for all sectors: commercial, industrial, and residential. Most …show more content…

Rising interest rates go hand in hand with rising inflation, which makes investment in stocks less attractive. The combination of all these things, leads to people spending less and saving more. Overall, this causes unfortunate events for the economy. After studying the 10-yr. treasury yield chart and reading about treasury yields, I have concluded that recently the yield has begun to rise briskly after being at its' all time low during 2016. Ultimately, as the treasury yield rises, banks begin charging higher interest rates. Again, this leads to a decrease in the amount of people and businesses looking to take out loans and purchase real

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