Mortgage Rates Approach 20-Year High of 8%, Threatening Housing Market

Mortgage rates are inching towards 8%, potentially drying up home-buying demand as monthly payments become unaffordable.

8% mortgage rates haven't been seen in over 20 years and may have a psychological effect.

Higher rates are driven by expectations that the Fed won't ease up on rate hikes given economic strength.

Investor sentiment reacting to economic data pushes rates up as stronger economy implies more Fed hikes.

Historical average 30-year mortgage rate is 7.74%, so 8% rate is high but not unprecedented.