The residential real estate market is less affordable now than anytime since before the financial crisis.
Federal Reserve Chairman Jerome Powell is facing a housing conundrum. The market is in the midst of a 15-month slump, with home price gains and sales having slowed dramatically and permits to build new dwellings slumping by 6.6% to the lowest level in more than two years. This despite a big drop in market interest rates thanks to the Fed's dovish pivot earlier this year.
Of course, a recession would pull down prices and solve the affordability problem (a