This should not be a total surprise as Wells Fargo's latest results shows the pipeline is collapsing - a forward-looking indicator on the state of the broader housing market and how it is impacted by rising rates, that was even more dire, slumping from $67BN in Q2 to $57BN in Q3, down 22% Y/Y and the the lowest since the financial crisis.

But in the month since those results, mortgage rates have gone higher still... (this is now the biggest 2Y rise in mortgage rates since 2000)...

What these numbers reveal, is that the average US consumer can barely afford to take out a new mortgage at a time when rates continued to rise - if not that much higher from recent all time lows. It also means that if the Fed is truly intent in engineering a parallel shift in the curve of 2-3%, the US can kiss its domestic housing market goodbye.