Is the Fed Tightening Interest Rates?

US stocks are down about 25% this year because the current policy response looks to be steering us towards higher unemployment and recession. Bonds are down 10 plus percent as well, and that's because of the sharp rise in interest rates. And the one asset class we really haven't touched yet is real estate. With 7.5% mortgage rates, it's basically impossible to expect residential home prices to remain unaffected. In fact, home prices would have to drop by about 40% in order to adjust for the increase in mortgage rates. The math just doesn't work. Something has to give.