If you thought monetary easing overall is hard to justify due to inflationary pressures, but housing specifically is facing challenges, this is one way to go. Lower rates help new borrowers qualify, and unlock some inventory by existing owners

Some people think only financing matters; other people think only zoning is important; but the synthesis has always been that financing conditions matter for when housing gets developed, and zoning matters for where

Some challenges include 1) does this just prop up house prices at an elevated rate, precluding any “affordability” 2) does it amplify inflationary challenges elsewhere, 3) what does it mean to have FF with a large investment book again, as they ran pre 2008

@PEWilliams_ The risk that more cash is returned to FF in a future low rate scenario (say a recession) is… fine? It can be hedged through FF issuing covered bonds as they once used to do.