A majority of asset managers said the Federal Reserve’s recent decision to slow the pace of its bond buys will lead to higher interest rates in the next three months, according to a quarterly survey of investment managers by Northern Trust.

The survey of approximately 100 investment managers, taken June 6-21, also found that 76% expect housing prices to rise in the next six months (that figure is down from 88% in the first quarter survey). Meanwhile, 22 percent of respondents expect housing prices to remain stable, up from only 9% who held that view in the previous quarter.

On jobs front, more than half (57%) of respondents expect stable job growth in the next six months, while those expecting accelerating job growth fell to 29% from 38% in the first quarter survey. However, the vast majority of managers (87%) expect U.S. corporate profit growth to increase or remain the same in the next three month, down only slightly from the previous survey.

“Monetary policy announcements in the U.S. have led to increased volatility in equity markets,” stated Chris Vella, chief investment officer for Northern Trust Multi-Manager Solutions. “Despite this volatility, most of our managers have a positive view on key economic indicators in the U.S., which may be why they continue to have supportive views on the U.S. equity market’s current valuation.”

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