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Odd Lots

Here’s How Weird Things Are Getting in the Housing Market

We’re hitting milestone after milestone in the US.

A home under construction in Arcola, Texas. 

A home under construction in Arcola, Texas. 

Photographer: Mark Felix/Bloomberg

Higher mortgage rates generally don’t bode well for the housing market, and the US has just seen one of the steepest increases in history.

Would-be homebuyers are facing massive sticker shock right now, with measures of affordability worsening at their fastest pace on record. In fact we’re seeing a number of milestones reached in the market, with spreads on mortgages and benchmark interest rates reaching levels unseen in decades, while the volume of new sales is slowing at a faster pace than even during the aftermath of the global financial crisis.