Over indulge yourself, where do you think interest rates are goin

[Eric Bilderback]

I'm gong to be the armchair Fed Chair and I invite you to do the same.  Please don't scold me this is only for fun and to see if someone has an idea I haven't thought of or thought through.

You may have heard the CPI came out higher than expected and the narrative seems to be that the Feds hands are tied and they will need to continue to raise rates by .75%.  I have heard people I think are very smart say the Fed will raise rates until they break something, I tend to agree with that.  Here are some questions I am curious about.

1. In regards to real estate how much will prices drop before the market is considered broken?

2. Is there a solid argument to be made that interest rates will continue to rise through a recession?  How damaging would that be for real estate prices?

3. I can see a scenario where the as the Fed raises interest rates the geniuses in Congress are pushing stimies (more inflation reduction acts, LOL) and we have more inflation as rates are increasing.

My over all idea is that interest rates will go up and locking in an interest rate now would be a good idea or if the Fed needs to reverse interest rates it will be a good opportunity to buy now at a good price and refi in a year or whenever rates go down.  Of coarse the third scenario in my mind is that there could be a total melt down and guys like me just get hammered, but I think that is less likely.

What say you?