In retrospect, it is the most obvious question: how, after the most aggressive tightening cycle in 40 years, has housing not only not crashed, but home prices are at all time highs (the second most obvious question is how can the Fed be launching a "panicked" jumbo-cutting cycle when home prices are not only at all time highs but also rising 6%... we'll leave that one for another time).
That is the question Deutsche Bank's Luke Templeman asked - and answered - in a recent research report (available to pro subs in the usual place). Below we excerpt the key notes, starting with the big picture:
