May be that is what Fed wants. Fed wants house prices and rents to be affordable for the average Joes. Currently, rent is going up because hardly any units for rents (my PM have no available units for rent). Current situation is silly. Average Joes can’t afford to buy because mortgage rate is too high and are struggling to pay rising rent. They have to ask for higher wage rise to pay for the higher rents. So how do Fed get out of this catch 22… Fed hikes rates to kill wage spirals yet rents are shooting up because of rate hikes which lead to demand for higher wages.
Just for info, in SG, house prices and rents continue to rocket despite numerous cooling measures implemented. Fed policy has implications for many nations.