Good post!
One additional point: all the talk about the Fed managing interest rates overlooks one very large fact - that the Fed has NO control over LONG-TERM interest rates - the market decides that.
And the market might decide that 8 or 10%, or 20% for that matter, is necessary to make a market. Then watch the Big Clearance Sale of mini-mansions.
If there is a clearance sell I'll be sure to buy the houses with the money I'm making now. How about you?