Interest Rates Squeezing Consumers This Summer, Reports TransUnion’s TrueCredit.com Difficulty felt especially when it comes to managing mortgage costs, says report
RISMEDIA, June 21, 2006—Rising interest rates are squeezing consumers’ pocketbooks this summer, especially when it comes to managing mortgage costs. A new survey conducted by Roper Public Affairs for TransUnion’s TrueCredit.com finds 27 percent of homeowners think higher interest rates will make it difficult to make mortgage payments.
It also reveals 24 percent currently carry an adjustable rate mortgage (ARM) or specialized home loan— a figure that jumps to 37 percent for those aged 25-49.
“Although housing prices are softening, the increase in interest rates is making it much harder to cover monthly housing costs,” says TrueCredit.com’s Lucy Duni. “If you’re a younger consumer, chances are you’re especially feeling the squeeze if you were drawn into the housing market by lower interest rates or are now considering purchasing a first home.”
The survey also indicates that rising interest rates will cause:
- Twenty-three percent of homeowners to consider refinancing
- Sixty-one percent of renters to have difficulty paying their rent
- Seventy-eight percent of renters to have difficulty purchasing a residence in the near future
“Whether you’re looking to get out of an ARM before rates get too high or apply for a first mortgage, you should get a copy of your credit report well in advance and examine it closely to see how you’ll be viewed by lenders,” adds Duni. “Managing your credit health properly can save you thousands of dollars over the life of a mortgage, and it’s not that hard to do. Two of the most important things to remember are simply to pay your bills on time and review your reports regularly.”
To learn more or to schedule an interview with Lucy Duni, contact Zachary Hastings Hooper, The Rosen Group, at 202.862.4355 ( Zachary@rosengrouppr.com).
Methodology
Roper Public Affairs conducted this study using Random Digit Dialing (RDD) methodology from May 12 through May 14, 2006. A total of 1,004 interviews were conducted among adults across America. Age, gender, income and geographic information were collected. The margin of error for the complete sample is +/- 3 percentage points. The margin of error for subgroups may be higher.
To learn more, visit www.truecredit.com |
