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Comment on The bond market isn’t buying what Fed Chair Warsh is sellingparent

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Higher interest rates mean buyers can afford less house for the money. House prices go down. Boomers get mad.

You're sure house prices are elastic here?

They are slowly elastic. The only way to speed up the re-pricing is a recession where people lose their jobs and are forced to sell. Otherwise, it's mainly young people entering their first house phase that get impacted - which is exactly what we've seen.

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