WSJ Weighs In On Rising Rates

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.