Rising mortgage rates could begin to cool a still-hot housing market

Mortgage rates have rebounded from their pandemic-era record lows and are rising rapidly. Those rising rates will eventually tamp down demand and cool the smoldering housing market, although the question of how quickly remains to be seen.

The average 30-year fixed-rate mortgage was 4.42%, up more than 1.25% from a year before, according to Freddie Mac. Three weeks ago, the rate sat at 3.76% — the fastest three-week increase since the 1980s.

Much of the pressure behind the rising interest rates comes from the Federal Reserve, which raised its interest...