Opened a short on this one today.

A pullback in housing prices would be a good thing. Many potential Buyers are on the sidelines. Inventory is the problem.

I do not understand how commentators still refer to the FED language on inflation, jobs etc as if we live in normal times. Surely that is simply cover for the real 800lb gorilla in the room - the Treasuries borrowing requirement this year (at $0.75T) plus the winding down of the FED's balance sheet (another potential $0.5T) plus accelerating sell off's by foreign CB's in T Bills? An unprecedented scale of borrowing which, so far, has only been possible because of lower rates in Japan and Europe and a reasonably stable US$ (i.e. no one is going to lend at 3% if they are losing on the currency by > 3%). Which suggests that the despite the language the primary indicators that the FED will have to react to are the value of the dollar and the bond market?