The recent warning from Moody’s Chief Economist Mark Zandi highlights the fragile state of the U.S. housing market amidst rising mortgage rates near 7%.
This surge in borrowing costs threatens to dampen home sales, slow new construction, and curb home-price appreciation—factors that collectively could act as a significant headwind to economic growth. For conservative, politically aware Americans, this signals a looming economic challenge, potentially impacting employment, consumer confidence, and fiscal policy.
The reluctance of homeowners with low-rate mortgages to move, combined with declining affordability, fosters a stagnation that could deepen if rates remain elevated. Policymakers and investors are closely monitoring Treasury yields, which influence mortgage costs, but the likelihood of relief from rate hikes appears slim. This situation underscores the importance of housing as a bellwether for economic health, hinting at a period of sustained turbulence if corrective measures are not taken soon. Read the full story at the source.
