Housing's Roof Collapses

Costs of homes are coming down, as those high interest rates kill sales

The U.S. housing industry, already creaking in the wind like an ill-maintained Victorian mansion, did not need the news out of Washington last week. The Federal Home Loan Bank Board reported that the nationwide mortgage interest rate rose to a blistering average 16.95% in early July, a record, and nearly double the rate of just five years ago. It is expected to surpass 17% this month. This means that a couple buying a $70,000 house, who have put down the standard 25% and financed the remaining $52,500 mortgage for...

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