Hi Jessilynn and welcome.:)
Yes, I have heard of this. I have even read about
and expericenced an anxiety rash! Here is a very comprehensive list of anxiety symptoms that includes quite a few skin issues.
Anxiety Symptoms, Anxiety Attack Symptoms (Panic Attack Symptoms), Symptoms of Anxiety:
http://www.anxietycentre.com/anxiety-symptoms.shtml
Of course, any new, changing or persistent skin problem should be checked out by your doctor to rule out anything physical in nature...but otherwise, I think that an antihistamine (check with your doctor before trying) is recommended. I believe it is thought that the itching as almost like an allergic response to the anxiety, so something like Benadryl could bring relief.
I hope that you find relief soon. Again welcome and post anytime.
Scaredy Cat