You also need to account for the increase in access to inexpensive money. The cheap and easy loans drive additional demand by allowing more participants into the marketplace who wouldnt have been able to buy before, and simultaneously empowering those already in a position to purchase to spend more.

Run this up alongside the fact that were not building new housing at any significant pace, and you get back to what i was saying about supply and demand.

Not enough houses to meet demand. it's that easy.

They raise rates hoping that they can kill demand, but the reality is that even at increased rates its still sensible to buy the house with fixed rate debt, because those who carry fixed rate debt in an inflationary environment will see the real costs of repaying their loan decrease.