Rising interest rates over the next several years could pose risks to both investors in mortgage-backed securities and mortgage lenders, warns Fitch Ratings. Fitch stated in a new report that interest-rate hikes “will fundamentally impact investors” in the roughly $6.8 trillion market for private label and agency U.S. MBS, and could have a negative impact on “banks with significant mortgage-related exposure and the structured of U.S. mortgage finance.”
