US home sales slump to 12-year low as mortgage rates breach 7% threshold

The U.S. housing market saw a steep decline in sales, hitting a 12-year trough as borrowing costs surged past the 7% mark. Rising energy prices and persistent inflation expectations have pushed bond yields to multi-decade highs, both domestically and in Europe. The surge in debt costs is also straining poorer nations, with the UN warning of looming liquidity crises. Developing governments now allocate a record 9.5% of revenues to interest payments, the highest in 25 years. The IMF’s chief economist cautioned that the global economy may soon test its resilience.