At the outset of the fastest increase in interest rates in 40 years, Fed Chairman Powell explicitly stated that the Fed would not mind seeing what he viewed as inflated home prices fall substantially.

While there are other initiatives underway to make purchasing homes more affordable, they likely won't come to fruition before supply reaches a tipping point that causes rapid and sustained downward pressure on home prices. People buying now could be trying to catch a falling knife and end up owing more than their homes are worth.