Mortgage Rates Near 8% Freeze Housing Market, Raising Recession Fears
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Mortgage rates around 8% coupled with high home prices have hurt housing affordability and frozen activity, potentially tipping housing into recession.
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Wells Fargo sees similarities between today's housing climate and the 1980s housing downturn.
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Principal and interest payments are up 26% from last year, far outpacing income growth.
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Supply is constrained as homeowners with low rates are reluctant to sell.
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New home sales are faring better than existing sales as builders offer incentives like mortgage buydowns.