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Goldman sees rising rates a drag on U.S. residential investing

Goldman sees rising rates a drag on U.S. residential investing© Reuters. FILE PHOTO: The Goldman Sachs stall on the floor of the New York Stock Exchange

NEW YORK (Reuters) – Goldman Sachs (NYSE:) economists said on Thursday rising mortgage rates would subtract 1 to 2 percentage points from U.S. residential growth over each of the next two years as they have already nicked the housing sector.

“While higher interest rates and tax reform should weigh on residential investment, the rate of homebuilding still looks somewhat low relative to demographic trends,” Goldman Sachs economists wrote in a research note.

Taking these factors into consideration, they projected residential investment to increase about 1 to 2 percent annually over the next few years.

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Source: Investing.com

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