Forget piddly 25-50 point interest rate hikes. The real pain will start June 1st. Fed will start reducing its balance sheet. (Explanation in comments)
(media.greatawakening.win)
💥 B O O O O O M 💥
Mortgage rates WILL go up, count on that at a minimum. However in the near term, maybe around 3 months give or take, expect the housing market to slow down some depending on where you are. Some of these crazy selling prices might get reined in, who knows.
The bigger issue for most I think will be that we will start seeing layoffs and businesses fail. QT ideally needs to be done slowly....remember how people say about central banks printing money out of thin air? Yes that's their job however in this case they will be deleting money out of thin air. You usually wouldn't want to do this at the same time interest rates are rising, but that's exactly what's been happening lately. I think it's going to be too much all at once and when you have economic/banking models that make sense on paper hit real markets with people, businesses and emotions involved, I believe it's going to get real messy.