Billionaire Investor Warns Soaring Mortgage Rates Could Trigger Economic Downturn

Soaring mortgage rates could lead to an economic downturn, according to billionaire investor Bill Gross.

Higher borrowing costs will slow home construction, an indicator of future economic growth.

Inflation may start to ease but economic growth could also falter, Gross warns.

Monthly mortgage payments on new homes now 3 times higher than 2 years ago, making housing unaffordable.

As housing construction declines, it could signal a broader slowdown in GDP growth in 3-6 months.