Housing Crash Imminent: As Mortgage Rates Explode Price Cuts Soar And Buyer Demand Collapses Housing Crash Imminent: As Mortgage Rates Explode Price Cuts Soar And Buyer Demand Collapses A little over a month ago, when mortgage rates were still "only" 5% we shared several devastating anecdotes from real estate agents and industry execs who validated our worst fears: US housing was imploding… fast, with subsequent observations only confirming this dire conclusion about the state of the most popular asset class among the US middle class. Fast forward to this week when things have gone from worse to catastrophic, because with 30Y mortgage rates soaring at the fastest pace on record to above 6%, or levels last seen just before the housing bubble burst... .... sending the average mortgage payment on a median mortgage up by almost $800 in just the past 6 months... making housing the most unaffordable in history ... ... sending new home sales plunging at the fastest pace since the peak of the covid crisis after the longest negative streak since 2010... ... and homebuyer sentiment imploding to the lowest level in generations...