WSJ Weighs In On Rising Rates

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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.


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