re: Home prices are now contracting at levels only seen 2 times

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I think 5% will be the floor which is a great rate but still cools things off from the highs we have seen.

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There’s a lot of people sitting on sidelines right now specifically Millennials and Gen Z who are either living in mommy and daddy’s basement or renting. Rates going from 7.x% to 5% even if it takes 18 months is just going to cause another buying frenzy which will elevate demand and prices for current homeowners who might consider selling but most have 3% or so rates so they won’t and it is going to keep supply low which is going to keep prices high. There’s no winning solution here for renters right now sans massive job losses. That’s it. Supply is so low these people are screwed whether rate is 7.x% or 5%.