Mortgage demand drops to a 22-year low as higher interest rates and inflation

> This means that investors will buy up even more

Not necessarily. Right now, 70+% of house sales are to owners who will live in them. If they're (mostly) gone, house prices will collapse, and some existing investors will get spooked and start selling, driving prices further into the ground. Many investors will vow to never buy another house, and others will stay away.

Your comment is in line with the perspective that has led to the current predicament. Every bit of financialization that has claimed to make housing "more affordable" has actually done the exact opposite over the long term, by driving up abstract asset prices that are unrealizeable to actual resident homeowners but keep new buyers out of the market. While having higher interest payments seems like a bad thing, with market feedback it actually reduces the amount of the principal, making it easier to pay off a mortgage early. If this return to having interest rates actually continues (as opposed to being reversed by the Fed in favor of Wall Street), this is short term pain for long term gain.

No money is created by QE in fact for the most part QE’s only effect is to tighten an already strained system struggling with “money” shortages.