A survey from Wells Fargo and Gallup has found that investors continue to take advantage of low interest rates.
The Wells Fargo/Gallup Investor and Retirement Index found that nearly 60% of investors have benefited from low rates. Altogether, 17% refinanced an existing mortgage or home loan and 16% took out a mortgage for a new home due to low rates, the survey reported.
"Investors found a variety of ways to benefit from the low interest rate environment, but this may be a good time for them to revisit their investment strategies and make sure they're properly diversified to benefit in a rising rate environment as well," Bob Vorlop, head of products and advice at Wells Fargo Advisors, said in a Sept. 15 news release.
Investor confidence, however, has slipped. In the third quarter, investor confidence fell to 58, from 70 the quarter prior, on growing pessimism among non-retirees due to concerns about the stock market and inflation. In particular, investors were shaken by the stock market correction in August, though 71% still expected it to hold steady or go up.
Investors also noted that they are making efforts to reduce their debt. While 83% of non-retired and 54% of retired investors hold debt, 89% of them made efforts to shrink it and 46% said it has gone down in the past two years. More than half of these investors included a mortgage in the debt they carry.
The survey, conducted in August, polled just over 1,000 investors from around the country.
