The chart on the left looks at U.S. mortgage rates and mortgage applications. The purple line represents the 30-year fixed mortgage rate while the dark grey line is an index tracking weekly mortgage applications. This chart shows an intuitive negative relationship between the two data sets, as mortgage rates rise, mortgage applications decline. Given the recent rise in mortgage rates, the demand for housing may slow, leading to a tailing off in property price. The chart on the right hand side looks at housing prices in the U.S., which is a useful cyclical indicator of the U.S. business cycle and a measure for household wealth, along with the supply of homes being sold on the market as a leading indicator. As you can see during periods of recession or slow growth (light grey area), housing prices tend to decline (purple line). Looking at the most recent data points, housing supply has begun to pull back, which signals slowing growth momentum in the U.S. Property prices also declines when we enter periods of weak economic growth.