The Fed Hiked Rates Rapidly, But Housing Is as Broken as Ever
On this episode of Odd Lots, we explore how mortgage rates haven’t had a significant cooling effect.
The Fed has hiked rates rapidly over the last 18 months, and yet inflation remains surprisingly high. But perhaps what’s most surprising is that even in a highly rate-sensitive area of the economy—housing—the surge in mortgage rates hasn’t had a significant cooling effect. Prices have barely budged, and even the homebuilders have been booming again lately after a brief dip in late 2022.
So what’s happening now? Why did the rate shock fail to derail the industry? And what is the lesson that homebuilders have taken away from this cycle? On this episode of Odd Lots, Joe Weisenthal and Tracy Alloway speak with Zonda Chief Economist Ali Wolf about why and how the housing market is still broken despite the Fed hikes.