Housing Market Faces a World of Pain


Several ominous signs face the housing market.

First, the average 30-year fixed-rate mortgage soared to a three-year high of 4.67% in the week ended March 31, according to housing agency Freddie Mac. That’s up from 4.42% a week ago and 3.18% a year ago, To be sure, the rate is down from 6.4% in October 2007.

The recent increase stems from raging inflation, surging bond yields, and anticipation of strong Federal Reserve interest-rate increases. Consumer prices skyrocketed 7.9% in the 12 months through February, a 40-year high.


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