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![KrisPatel99 Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::2164634358.png) Kris Patel 🇺🇸 [@KrisPatel99](/creator/twitter/KrisPatel99) on x 28.2K followers
Created: 2025-07-16 19:26:47 UTC

Is it wrong to say… people need affordable homes, not affordable interest rates?

Today on @amitisinvesting's stream, I know I may have come across a bit heavy-handed in arguing against cutting rates too quickly — but there was actually some logic behind it.

The home price-to-median income ratio has now surpassed 2008 levels, and much of that is likely due to the "lock-in effect" from sub-3% mortgage refinances during the COVID period.

But now, inventory is starting to rise. If interest rates were lowered too quickly, we could see a surge of inventory hit the market all at once — causing a sharp correction instead of an orderly return to normalcy.

A lot of people believe that firing Jerome Powell would automatically lead to lower interest rates, but they forget that long-term inflation expectations aren't set by the Federal Reserve — they're set by the market.

Cutting rates into an environment of accelerating inflation would actually push long-term yields higher. With tariffs now beginning to contribute to cost-push inflation, it makes little sense to cut rates while simultaneously increasing trade barriers.

![](https://pbs.twimg.com/media/GwAHOK6WMAA5RBX.jpg)

XXXXXX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1945565795292938461/c:line.svg)

**Related Topics**
[lockin](/topic/lockin)
[rates](/topic/rates)
[homes](/topic/homes)
[affordable](/topic/affordable)

[Post Link](https://x.com/KrisPatel99/status/1945565795292938461)

[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]

KrisPatel99 Avatar Kris Patel 🇺🇸 @KrisPatel99 on x 28.2K followers Created: 2025-07-16 19:26:47 UTC

Is it wrong to say… people need affordable homes, not affordable interest rates?

Today on @amitisinvesting's stream, I know I may have come across a bit heavy-handed in arguing against cutting rates too quickly — but there was actually some logic behind it.

The home price-to-median income ratio has now surpassed 2008 levels, and much of that is likely due to the "lock-in effect" from sub-3% mortgage refinances during the COVID period.

But now, inventory is starting to rise. If interest rates were lowered too quickly, we could see a surge of inventory hit the market all at once — causing a sharp correction instead of an orderly return to normalcy.

A lot of people believe that firing Jerome Powell would automatically lead to lower interest rates, but they forget that long-term inflation expectations aren't set by the Federal Reserve — they're set by the market.

Cutting rates into an environment of accelerating inflation would actually push long-term yields higher. With tariffs now beginning to contribute to cost-push inflation, it makes little sense to cut rates while simultaneously increasing trade barriers.

XXXXXX engagements

Engagements Line Chart

Related Topics lockin rates homes affordable

Post Link

post/tweet::1945565795292938461
/post/tweet::1945565795292938461