It would seem obvious that housing prices should drop in the near term (and I hope they do), but I can't totally square that with falling mortgage rates and ris

It would seem obvious that housing prices should drop in the near term (and I hope they do), but I can't totally square that with falling mortgage rates and rising asset inflation. If the Fed rate stays at 0% then I've been told to expect 30-year fixed mortgage rates should eventually drop to between 1.5-2%. Rates that low increase buying power and could be a powerful form of stimulus for the housing market. Beyond that, rental real estate is not immune to the current inflationary multiple expansion seen in financial assets. The lower the yield on something like $SPY falls, the more attractive the yield/rent from real estate becomes by comparison.