Mortgage rates went up and the housing market cooled. Here's the connection.

Originally reported as: “Higher borrowing costs weigh on home sales as mortgage rates hold near multi-year highs”

Higher interest rates pushed up the cost of home loans, and the housing market slowed as a result. When mortgage rates rise, monthly payments on a new home loan get more expensive, which can price some buyers out entirely. That tends to cool demand for houses and can slow the pace of price increases. This is one of the clearest examples of how central bank interest rate decisions reach directly into a major life purchase.