Mortgage rates at these levels will hobble the [housing] recovery, and it was just the beginning of the recovery.
– Kenneth Rosen (subscription required), Chairman, Fisher Center for Real Estate and Urban Economics, University of California, Berkeley.
The Wall Street Journal ran a front page article this morning on rising rates – following on a post I wrote yesterday “Could Rising Rates Kill The Rally?” Mortgage rates rose 79 basis points in the two weeks ending Wednesday. This is a big deal as it raises the cost of buying a home and decreases the rationale for refinancing for many. It’s not just mortgage rates either. Rising interest rates increase carrying costs in a debt dependent society like our own.