U.S. housing costs are rising partly due to supply issues, including materials cost inflation, a tight labor market and restrictive building codes. Demand is climbing, too, with millennial family formation and population growth. At the same time, underwriting standards are still rigorous, and an increasing number of purchases are all-cash. And higher interest rates, particularly when coupled with economic growth, robust savings and growing income, don’t necessarily hurt home prices. While price increases may slow to a 4%-5% this year overall, hard to see a collapse. A recent channel-check with large private builders revealed no changes in order trends or inventory levels, indicating there’s no softening in demand yet. Meanwhile, data from Black Knight show the foreclosure rate is climbing as pandemic-triggered borrower protections roll off -- but it’s still ~40% below the pre-pandemic level. And the national delinquency rate has continued to improve, with the number of seriously past-due mortgages sliding.