Odd Lots
Here’s What 8% Mortgage Rates Will Do to the Housing Market
What happens if rates stay higher for longer?
Rows of houses stand in Las Vegas, Nevada, U.S., as seen in this aerial photo taken on Tuesday, Sept. 22, 2009.
Photographer: Jacob KeplerThis article is for subscribers only.
What goes up must come down?
US house prices have so far defied many analysts’ expectations and barely budged in the face of the highest mortgage rates in two decades, with the average rate on a 30-year fixed mortgage soaring to nearly 8% in recent weeks. After a brief and shallow dip earlier this year, the S&P CoreLogic Case-Shiller US National Home Price Index has resumed its upwards path, even as yields on 10-year US Treasuries have soared to levels not seen since 2007.