I’ve been really surprised at how many of my buyers and other agents are aware that the Fed will stop buying mortgage-backed securities. And, like Ken’s comment reflect, I hear a lot of pessimism about the potential of much higher rates later this year.

But I think you’re right that we shouldn’t be so worried about higher rates. If the market was worried, wouldn’t we see higher rates now in anticipation? I think the Fed is really doing a superb job with monetary policy. If inflation starts to rise, then we’ll see mortgage rates start to creep up. But for inflation to go up, employment has to go up. And, if people have jobs and want homes, won’t they enter the housing market even if rates are a bit higher?

Great post. Maybe I’ve been spending too much time under powerlines lately, but I gotta say you make compelling points here.