The Fed may have destroyed the housing market by crushing both supply and demand, top economist Mohamed El-Erian says

• The Fed may have broken the US housing market, according to top economist Mohamed El-Erian.
• That’s because interest rate hikes have helped drive up mortgage rates, weighing on both supply and demand.
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The US housing market may be broken, and the Federal Reserve’s aggressive interest rate hiking cycle over the past year could be to blame, according to top economist Mohamed El-Erian.

“There’s a real issue as to whether we’ve broken the housing market,” the Allianz chief economic advisor said in an interview with CNBC on Monday, pointing to high mortgage rates weighing on the market. The average rate on the 30-year fixed mortgage notched a fresh 23-year-high last week, clocking in at 7.48%, according to Mortgage News Daily.