I wonder what happens to the housing market. In the early 80's people literally swapped mortgages because getting a new mortgage came with rates >15%. Even if rates go back up to only 7.5% what happens to housing prices? It also seems like there may be a massive bubble of hedging in leveraged real estate by big institutional investors. Something like 25% of all purchases are by investors right now. What happens when regular people (who need a loan) can't afford the higher interest rates?