The Central Bank says 35-45 year olds who bought houses in the boom are 'highly indebted' and when tracker rates increase 'will find themselves more stretched'
Image: Shutterstock/wavebreakmedia Image: Shutterstock/wavebreakmedia THOSE AGED BETWEEN 35 and 45, who bought their homes at the peak before the recession, will be the most impacted group of society if mortgage interest rates rise. Mark Cassidy, Director of Economics and Statistics for the Central Bank of Ireland said this group of people who bought prior to the recession, are one of the most indebted and the “most vulnerable” to any income, house price or interest rate shocks.
Combined with expectations of modest inflation, he said it should translate into “higher real incomes and purchasing power for households”. The Central Bank is forecasting the average increase per employee to increase from 2.8 % last year to 3.4% this year and 3.6% in 2020. He added that the country is seeing a very high rate in job vacancies, as well as job switching. Speaking about the labour market, Cassidy said the unemployment rate is projected to drop from an average of 5.
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