Friday, February 16, 2018 2:14 PM EDT
Mortgage rates are at the highest level since March of 2014, and another 15 basis points from the December 2013 level.
Housing starts surged today reflecting new home sales that surged late last year. Surprised economists seem to have forgotten that starts follow sales.
Some of that surge may have been hurricane related.
Regardless, rising interest rates will at some point take a big bite out of sales. Home prices are not affordable, and rising rates make them even less affordable.
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Disclaimer: The content on Mish's Global Economic Trend Analysis site is provided as general information only and should not be taken as investment advice. All site content, including advertisements, shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s). The author may or may not have a position in any company or advertiser referenced above. Any action that you take as a result of information, analysis, or advertisement on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.
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