Earlier this year you were looking for a home and decided you could afford a mortgage payment of $$1200$ per month. At that time interest rates on $30$ year mortgages were $3\mathrm{.}75\%$ compounded monthly. How big of a loan could you afford?

b$.$ Recently the Fed increased interest rates so now a $30$ year mortgage is $6\mathrm{.}3\%$ compounded monthly. If you still can only afford a $$1200$ per month payment, how big of a loan could you now afford?

c$.$ Based on your answers what do you think will happen to the housing market?