Fed Chairman Jerome Powell gave a hawkish speech today about how the Fed was going to do whatever it takes to get inflation back to 2%.

How will this change in Fed monetary policy impact housing prices?

If the Fed keeps its word in its commitment to bring inflation down to 2% (it’s 8.5% now), the actions the Fed needs to take will almost surely result in the following:

• the economy is going to get pounded;
• the jobless rate is going to rise;
• mortgage rates are going to spike higher – and possibly way higher;
• housing prices are going to get creamed – especially in CA.
  

No good thing lasts forever folks – and as I frequently point out in my Timing Letters, the hangover is usually proportional to the binge.

Adjust, adjust, adjust has always been the way to survive in the markets – and it seems the ever-present battle for investment survival is now about to get even more intense.