Jim Young/Reuters
- Soaring mortgage rates could be bad news for the economy, Bill Gross tells Insider.
- Steeper borrowing costs will curb home construction, a leading economic indicator, he says.
- Inflation may cool but growth might falter, according to the billionaire investor called the "Bond King."
The housing market is grinding to a halt as borrowing costs soar, paving the way for a broader economic downturn, Bill Gross said.
"Potential homeowners' monthly payments on a new home are now three times what they were two years ago," the billionaire investor known as the "Bond King" told Insider in an email.