Analyst Eric Basmajian stated that the US 30-year mortgage rate has risen to 6.76%, a 14-month high. If the Federal Reserve raises interest rates again, and long-term US Treasury yields remain high, housing transactions, construction activity, and furniture and appliance consumption could continue to be under pressure. However, the real risk is not just a weakening of the housing market alone, but rather that interest rate hikes could spread housing pressures to construction employment, durable goods, and credit, evolving into a broader cyclical downturn.
