Will Housing Inflation Keep Interest Rates Higher for Longer?
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Housing prices in the US are showing resilience despite the Federal Reserve's tightening policy and before rate cuts have arrived. After the Fed began raising interest rates in early 2022, housing prices initially took a hit, but they have since revived and are increasing more than 6% a year. This revival in housing prices is notable because it is happening before the Fed has started cutting rates. The rise in housing prices is also contributing to the sticky inflation problem the Fed is facing. Once the Fed starts cutting rates, it could further strengthen the housing inflation. The challenge for the central bank is to set policy when housing prices remain resilient while economic growth is slowing. There is also a shortage of affordable housing and high interest rates in the US, which is exacerbating the housing supply and demand imbalance. US Treasury Secretary Janet Yellen believes that shelter costs, which have been pushing up inflation, will come down, but there is no sign of that happening yet.

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https://www.investing.com/analysis/will-housing-inflation-keep-interest-rates-higher-for-longer-200648263