Why the Fed's Rate Hikes BACKFIRED on Housing (Interest Rates)

Описание: In 2023, the Federal Reserve executed the most aggressive rate hikes in forty years. The housing market was supposed to crash. Instead, prices held steady while sixty percent of American homeowners sat frozen, locked into mortgages too valuable to surrender. This is the story of a trap nobody designed—and nobody knows how to escape.



The American housing crisis defies conventional economics. Interest rates doubled, yet prices refused to fall. The mechanism behind this paradox is a collision of three forces: a four-million-unit construction shortage created after the 2008 financial crisis, zoning laws that deliberately block supply in high-demand cities, and a generation of homeowners holding fixed-rate mortgages at historic lows who cannot afford to sell. The Federal Reserve's models assumed a functioning market. What exists instead is a system that punishes new buyers, paralyzes existing sellers, and transfers wealth upward automatically. This video dissects how post-crisis regulations, pandemic-era monetary policy, and local land-use restrictions combined to create a housing market that breaks every rule economists thought they understood. The wealth gap between owners and renters is now the widest since the Gilded Age—and the trap is only tightening.



*WHAT YOU WILL LEARN*

• The Lock-In Effect - Why sixty percent of homeowners holding sub-four-percent mortgages mathematically cannot afford to sell, strangling inventory nationwide.

• The Post-2008 Supply Canyon - How regulators prioritized lender safety over housing construction, creating a four-million-unit shortage that permanently distorted the market.

• The Zoning Trap - How single-family zoning laws weaponize local regulation to block density in exactly the cities where demand is highest.

• The Rate Hike Paradox - Why the Fed's aggressive tightening froze the housing market instead of correcting it, causing transactions to collapse forty percent while prices barely moved.

• The Generational Wealth Transfer - How the current system automatically enriches existing owners while pushing renters and first-time buyers further from ownership.




DISCLAIMER: This video is for educational purposes only. It does not constitute financial advice. Macroeconomic analysis involves probabilities, not certainties. Viewers should consult with a qualified financial advisor before making investment decisions.




*ABOUT THE CHANNEL*
THE UNTOLD ECONOMY explores the hidden mechanics of power, money, and crisis. We deconstruct the crashes, wars, and policy mistakes that shaped the modern world, strictly focusing on the period from the 1850s to today. This is not news; this is a forensic analysis of why systems fail.




#TheUntoldEconomy #HousingCrisis #InterestRates

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