How Mortgage Rates Affect Personal Savings Rates in the U.S.

Abstract

Currently in the United States, we are experiencing a significant increase in mortgage interest rates. While there are various factors that influence mortgage rates, high mortgage rates have an effect on the economy. Specifically, how mortgage rates affect one’s ability to save money. In this study, I asked how mortgage rates affect the personal savings, while accounting for the NASDAQ 100 and the participation of women in the labor force. The results of the regression suggest that when mortgage rates increase, savings rates will also increase.