Or at least painfully un-screw them.

You can't JUST blame the fed though - the more direct way the government pumps up prices is through mortgage buying via fannie and freddie - yes, at low rates set by the fed.

Don't feel bad for buyers though - they're getting houses at the same monthly payment at a much lower purchase price than otherwise. And if/when rates go back down later, then they can refi to a lower payment as well. And they get to stick it to the next buyer with a higher price.

So yes, I agree with you.