The Biggest Risk Is Inflation Persistence

The biggest risk is inflation persistence or what in plain English, more sticky inflation that doesn't go down to the Fed's 2% target. With mortgage rates going up from 3% mortgage rates during the pandemic, peaking at 7.5%, that's still holding back demand. We will not get the slowdown that we saw in 2007 and 8.9 because the inventory of homes for sale was much better this time around. But it's very clear that with mortgage rates at these high levels,. then the housing market is unfortunately still quite vulnerable to interest rates staying in elevators.