Mortgage rates are at the highest level since March of 2014, and another 15 basis points from the December 2013 level.

Housing starts surged today reflecting new home sales that surged late last year. Surprised economists seem to have forgotten that starts follow sales.

Some of that surge may have been hurricane related.

Regardless, rising interest rates will at some point take a big bite out of sales. Home prices are not affordable, and rising rates make them even less affordable.