High interest rates don't directly impact housing prices or supply. Instead, prices are determined primarily by supply and demand dynamics.
That's the assertion of real estate mogul Grant Cardone, who suggested in a May 7 post on X that the Federal Reserve and the Biden administration don't understand the laws of supply and demand. Higher interest rates impact the ability of homeowners with lower interest rates to purchase a different home.
"Prices are controlled by supply and demand, not rates," Cardone posted. "History proves that. Higher rates only ‘trap' existing homeowners with sub 4% loans from trading up to a new home."
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