Oh it would, because many people would lose their home. And price discovery is already completely fucked, banks would never give out 30 year fixed rate loans i

Oh it would, because many people would lose their home. And price discovery is already completely fucked, banks would never give out 30 year fixed rate loans if the fed wasn't buying them all up. If we had all ARM loans then the problem would be unfucking itself right now as the fed raised rates. Instead past mortgages are insulated from the market....unless the market is in the mortgagee's favor, in which they refinance. This is why things are so bad right now. Especially when you factor in the rise of remote work for white collar workers (read: homeowners). There is no reason for them to ever give up their 2% rate. Hence inventory is in the dirt.