Economists have said that the U. S. economy is making its first steps toward recovery from the recession, but it will mean the end of cheap credit for American consumers.

The New York Times reported on Sunday that experts say rising interest rates will be the inevitable result of the country's ballooning debt and renewed fear of inflation.

According to financial sector analysts, after 30 years of decline in the cost of borrowing, the shift will hit consumers hard.

Bill Gross of investment firm Pimco said, "Americans have assumed the roller coaster goes one way. It's been a great thrill as rates descended, but now we face an extended climb."

It has also been predicted by experts that the impact of rising rates will hit the housing market first.

The Times further reported that thirty-year fixed mortgage rates have risen a half point since December, just as the housing market was beginning to recover from a deep slump, and analysts predict the rise will continue.

Christopher J. Mayer, a professor of finance and economics at Columbia Business School, said, "Mortgage rates are unlikely to go lower than they are now, and if they go higher, we're likely to see a reversal of the gains in the housing market. It's a really big risk."

It was further noted by the Times that interest rates on credit cards and on car loans have also begun to increase significantly. (With Inputs from Agencies)