Michael Burry Chimes in...When it comes to housing, it’s the interest rates, stupid

The Big Shorter declares "Random Walk is correct! There is no affordability-shortage crisis, but there is a 30-year fixed rate mortgage subsidy crisis"

Republishing this short piece from August 2025 to celebrate the occasion of Michael Burry’s recent realization that Random Walk has been right about the housing market all along (as if that wasn’t entirely obvious by now).

First, the Burry prelude.

And then, the post from the archives:

It’s the interest rates, stupid

• decline in home values is obvious, if you know where to look

• CRE values are down, rents are down . . . but owner-occupied single-family homes just go up? Puh-lease.

• St. Louis Fed confirms: Random Walk is right, it’s the interest rates, stupid

• Decline in existing home values is showing up in clearing prices