A Redfin real estate yard sign is pictured in front of a house for sale on Oct. 31, 2017 in Seattle, Washington.
A Redfin real estate yard sign is pictured in front of a house for sale on Oct. 31, 2017 in Seattle, Washington. - 
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The Federal Reserve has been raising short-term interest rates, but long-term borrowing costs have been rising, too. Freddie Mac said Thursday the average rate on a 30-year fixed-rate mortgage rose to 4.94 percent, a nearly seven-year high. Those higher costs are taking a bite out of demand. For example, mortgage applications fell to a four-year low last week. And home sales and price increases have been slowing. Ten years ago, a housing collapse contributed to a deep recession. A decade on, what could a housing slowdown mean for the overall economy?

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Follow Amy Scott at @amyreports