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The Stock Market Fears Interest Rates Will Go Up Sooner Than Expected

Posted by: RateAPY Bank Rates News
December 31st, 2009

Most economists believe that it is an economic certainty that when the economy recovers, interest rates on everything from mortgages to certificates of deposit and money market accounts will go up. They say it is not a question of “if” but a question of “when.” Yesterday, the stock market got spooked on continued good news for unemployment claims. Signs that the economy is recovering means the days of higher interest rates are getting closer.

Interest rates on mortgages, certificates of deposit, and money market accounts have been low for a long time as part of the economic stimulus. The stock market is watching unemployment numbers carefully to determine when the recovery is on solid ground again. Yesterday’s employment numbers sent chills up the traders’ spines because it looks like things could start moving faster than expected. Keep your seat belt fastened; the second half of the economic recovery may be at break-neck speed.