“You don’t need a Ph.D. in economics from the University of Chicago to understand that 7% mortgage rates are a threat to the U.S. housing

We’re already seeing it. On Tuesday, we learned that mortgage purchase applications fell 13% last week. That’s starkly sharper than the 1.1% decline we saw in the previous week. The difference? Last week’s 13% mortgage purchase application decline coincided with the first weekly 7% mortgage rate reading since 2002.

We’re already seeing it. On Tuesday, we learned that mortgage purchase applications fell 13% last week. That’s starkly sharper than the 1.1% decline we saw in the previous week. The difference? Last week’s 13% mortgage purchase application decline coincided with the first weekly 7% mortgage rate reading since 2002.

This heightened affordability crunch already has economists and housing analysts alike downgrading their U.S. home price outlooks. Look no further than Moody’s Analytics.”.