The highest mortgage rates in two decades could set off a “severe” price correction that could pull housing prices down by as much as 20%, the Federal Reserve Bank of Dallas warns.
“The possibility of a sharp price correction leading to an economic contraction would further complicate Federal Reserve inflation-fighting efforts,” writes Dallas Fed economist Enrique Martinez-Garcia.
“In the current environment, when housing demand is showing signs of softening, monetary policy needs to carefully thread the needle of bringing inflation down without setting off a downward house-price spiral—a significant housing selloff—that could aggravate an economic downturn,” Martinez-Garcia writes.
I see the media AGAIN is starting panic. Why is this needed? I hurts ALL.