The FED thought it could fix housing prices by raising rates (yes, they did [1]). What they failed to realize is everybody is now so locked in with their sub-4% interest rates, the vast majority are happy to sit for the next 10-30 years. This is going to mess up the market for a long, long time. I say this as someone who was lucky to get one of those sub-4% rates, but now would like to move closer to my new job, but can't justify it.
The future is you either have a house or you don't and the down payment and monthly payments escape your income bracket or destroy it on a monthly basis. Nobody with a sub-4% is going to sell, the cat is out of the bag and its more profitable to hold that low of a rate longterm and rent it out than sell.
The future is you either have a house or you don't and the down payment and monthly payments escape your income bracket or destroy it on a monthly basis. Nobody with a sub-4% is going to sell, the cat is out of the bag and its more profitable to hold that low of a rate longterm and rent it out than sell.
[1]: https://www.cnbc.com/2022/09/28/why-are-houses-so-expensive-....