This podcast episode explores the housing market and its relationship with monetary policy. It discusses the impact of supply shortages and unique factors on house prices. The mortgage lock-in for homeowners is identified as a key factor in the housing market, resulting in low inventory. The episode also discusses the potential risks to the labor market and the effects of declining mortgage rates on housing supply and demand. Overall, there is a moderation in home price appreciation, but not a significant decline. The housing market suggests that monetary policy might be less effective than in the past, but it does not imply that it is not working.
