In a National Association Home Builders (NAHB) recent newsletter, Chief Economist, Robert Dietz dove into the U.S. economy's supply chain issues and surrounding issues. Due to the supply chain issues and a significant rise in government spending, the consumer price index (CPI) measure of consumer inflation recorded a 7 percent year-over-year gain in December 2021, which was the highest in nearly 40 years.

 
During the 2010s, the CPI averaged a 1.8 percent annual growth rate.

NAHB forecast foresees the Fed raising the federal funds rate three times in 2022 and accelerating the pace of asset-backed security purchases which will cause rates to rise this year.

The 10-year Treasury rate rose from 1.4 percent at the beginning of December to 1.7 percent in the second week of January with the average 30-year fixed mortgage expected to increase to 4 percent by the end of the year. This coupled with ongoing home price appreciation, home affordability is further divided.

https://nahbnow.com/2022/01/elevated-inflation-and-higher-interest-rates-in-2022/