Who knows what they’re doing. My general view is that Fed rate changes don’t really change anything that much anyhow. So they’re just doing something to make it look like they deserve their jobs. Who knows?
In fact, I am becoming more convinced that a rate hike in this environment could actually exacerbate the housing boom as it’s creating a feeling of opportunity loss for those who haven’t locked in a cheap mortgage yet. This would also be consistent with what happened in 2003-2007 as the Fed rose rates they actually exacerbated the demand for housing.