“Dollar value” and “dollar availability for housing purchases” are two completely different things. You are treating them as the same thing.
As an example, take the drop of the 10 year bond over the last few days. The money supply has not changed – the Fed neither changed the money supply, nor rates.
However, mortgage rates rose, making less money available for housing. Thus, even though currency was not artificially devalued, there is less of it available for housing.
