but remember new loans are based on current prime rate, which is a lot more fluid than the rate on the 10 year treasury. When the Fed raises the interest rate, the prime rate will follow and move up, and that is the driving rate for new loans.

My biggest concern is if the Fed needs to raise the rates quickly and as many times they have stated for the year, this could lead to an inverted yield curve, plus other factors could throw this whole thing into a mess with higher gas prices, which on subtle way, also affects the prime rate. We already know inflation is at a 40 year high, and is probably likely to go higher, this will affect cost of business, which will include interest rates charged.

But the inverted yield curve will lead to a recession, and that again will affect housing to a point where most people will not be able to afford, so that will usually lead home prices to drop.

I absolutely don't want to see this happen, but from where I am sitting, it's not looking very bright.