1) Over the past 2 months, long-term interest rates have rallied despite recent Fed cuts. Higher rates means that mortgages are less affordable. Since housing prices are based on affordability, property values may decline as a result.

2) Housing affordability has been a structural issue in recent years. With fewer young families able to purchase their first home, it can also make it harder for empty-nesters to sell and downsize.

3) Without the ability to purchase the home they want, many families are tempted to renovate or redecorate their current dwelling. By saving for a bigger downpayment instead, families can help reduce their overall mortgage payment by taking on a smaller loan.

4) N/A

5) The correct amount to save depends heavily on your goals. Most financial planners first recommend saving for an emergency fund. Saving for retirement is also important, as fewer and fewer workers are offered a pension from their employers. There is no magic number, but an emergency fund and retirement are certainly high priorities for most families.

6) Investing for the long-term is an important goal. However, it's important to approach investing with reasonable expectations. The best-known investors built their fortunes over decades with careful and deliberate research, analysis, and stock selection. I can think of very few who traded in and out of the market frequently, or dealt in speculative stocks based on "hot tips".

7) With the recent uptick in interest rates, affordability remains low for most homebuyers. Saving up for a bigger downpayment may reduce the monthly mortgage payment due to a lower loan amount. It might take longer to find the right home at the right price, but that may be better than jumping into an unaffordable living situation.