Who is still in denial about a housing correction? The Fed just made another .75% increase. Powell said they won’t stop until inflation is 2%. He also said a recession would be better than the consequences of unchecked inflation. He announced he will bring rates to a “restrictive level” until “the job is done”. He said that labor demand needs to soften (ie: layoffs). He very explicitly said he wants to slash demand and that housing needs a “correction”.

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Posting as :
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It’s going to happen. Already is

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Last time I checked, inflation is under control. All the damage has been done. Monthly inflation is basically zero. Year over year inflation is high but isn’t increasing. Unless Powell wants monthly deflation, I’m not sure what the plan is. Are we going to keep increasing rates until this time next year so that the denominator in their silly year over year calculation can catch up?

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If you are being sarcastic, you did too god of a job lol

Define correction.

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SC1 so you are saying that the Fed will fail at their plan to crash the economy? Why?

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Correction? This is hard landing crash for housing and overall US economy. So far we have seem the affordability issues and some price cuts…. We are headed to severe recession that will trigger defaults and forclosures.

And more concern that interest hikes, I am really worry about QT. In few days, Fed will stop buying MBS which basicaly means the private banks/investors will price risk to hold MBS in their BS, this could push 30yr mortgage to 7-8% by December…. Simple math…. house prices need to go 30-50% lower for the same monhtly payment.

My conclusion, Fed decided to destroy the housing market to generate recession and kill inflation expectations…. it will kill many of us in the process.

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They agree with your conclusion, but they justify it. Today Powell said that it’s better this way than having inflation getting out of control in the long run.

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