and if you zoom out, it's still surprisingly low compared to other periods with inflation. Either Powell did a good job squashing inflation (and a few more quarters will prove it), or he's missed the mark and it's still going to be persistently above 2% for a very long time.
I'll start to throw around some hyperbole if we get above 8% fed funds rate
Shiller (of the Case-Shiller real estate price index), came out recently and stated he expects the buy side to slow down once the Fed signals they're done raising rates. He typified buyers as willing to pay increased prices now because they don't want to buy at higher rates. I think I saw it yesterday...
current home owners who sell, end up buying another home most of the time. there isn't any significantly less inventory. housing shortage comes from more.people wanting to buy homes, and new inventory lagging the increase in want to be buyers
For people with a ton of money, sure it doesn't matter. But most people buy nicer and newer houses throughout life, freeing up smaller and older houses for the next generation. When that quits happening, everything gets kinda logjammed.
I'll start to throw around some hyperbole if we get above 8% fed funds rate
See this chart: https://www.macrotrends.net/assets/images/large/fed-funds-ra...
(note the chart is not current, so make sure you extrapolate the line up to 5.5%)