The Fed's housing aim

Even the media is waking up to the fact that rates are not only going higher - they're going MUCH higher. Why? Because the fed HAS to deflate the runaway housing bubble. Also see New Zealand central bank comments for direction on where we're heading


It looks like the rate hikes are hitting their target. Let's hope the aim stays true.

No Federal Reserve official could ever publicly admit it, though everyone in the financial world seems to believe that it's true: the Fed is going to raise rates until it's taken the heat out of the housing market.

And if it as true as everyone thinks, these tight-lipped Fed folk must be secretly doing a little victory dance behind the thick gray walls of the Board of Governors in Washington.

First we see that home affordability has fallen because home prices are leaping -- what the Fed is worried about -- and because interest rates are rising -- the Fed's weapon to fight it.

Then we see shares of homebuilding giant Toll Brothers get hammered because they see signs of softening demand in some regions