The kicker is how long they will be able to do that. If the Fed raises the borrowing rate for banks, they won’t be able to hold back inventory and the supply will balloon. [/quote]
I’m not following your logic here. What is the relationship between the “borrowing rate for banks” and inventory that is being held back?
[quote=sreeb]
If interest rates for buyers increase, demand will implode. [/quote]
What does history tell us about the relationship between interest rates, inflation (rents, specifically), and housing prices? (Not that history is always a good precedent, but it should be considered, yes?)
