Cracks in the US Housing Market?

While GDP is expected to remain on a path of moderate growth through 2014, some risks have appeared in the housing market.

A sharp rise in mortgage rates drove down housing affordability, mortgage applications and prices.

Leading indicators suggest weakness for the next few months which could slow mortgage equity withdrawl and personal consumption.

Mitigating factors include still historically high affordability, rebounding construction employment in September, and the Fed keeping a lid on mortgage rates. As a result, the weakness is probably temporary and poses minimal risk to the rest of the economy.