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Comments by "none none" (@nonenone1534) on "ZILLOW: Housing Crash Coming in 2022" video.
Great video Travis!! No one speaks of QT and the effects on rates. Can we please analyze this more? Fed funds rate is only one tool. Unemployment projected to go above %5.00. Recession will deepen. More bad news on home prices will come out. Prices will continue to drop gradually over time.
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QT is the tricky part. Yellen tried to sell MBS in 2013 and backed off! Market didn’t tolerate it well. Fed must be pressed to unwind the balance sheet and not chicken out again. Fed funds rate isn’t going to drive up mortgage rates to where they need to be, but QT will!! Sheltering costs must come down in the country immediately. This is irresponsible. Powell is not qualified. 2.25 fed funds rate is NOT neutral rate when CPI is at %9.1!!
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