In mid-June, Fed Chair Powell used a phrase when addressing reporters that caught a lot of attention at the time. He made clear that the central bank was carefully watching housing prices and residential investment, and then said this: "I'd say if you are a homebuyer, somebody or a young person looking to buy a home, you need a bit of a reset. We need to get back to a place where supply and demand are back together and where inflation is down low again, and mortgage rates are low again."
He added that the Fed world work "in a way" so the housing market "settles in a new place and housing availability and credit availability are at appropriate levels." Then he said thank you and left.
Ten weeks later, there is little sign this is happening. John Burns Real Estate Consulting takes a harder-edged view, saying that to address inflation, "the Fed is throwing the housing market 'under the bus'" across the board with rising rates.
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