Or more likely, rates eventually find their way back down and home prices sky rocket with all the freshly available buying power creating endless bidding wars.
Yeah, because fed is stupid about inflation. That'll just mean higher rates for longer.
I mean, isn't it? Try as I might, I've yet to find any explanation about what theory of money they operate on. I've began to suspect the issue isn't a poor ability to research on my part.
The US is in for hyperinflation then
Fannie Mae and Freddie Mac restrict the maximum amount of the conforming loans which could help limit prices going to the moon. However, popular pressure will be applied for them to increase the limits (or "they're hurting 'poor' people who don't own a home".