Can the Fed pull off a controlled slowdown of the housing market?

Estate agents are known for their sunny disposition. Lindsay Garcia, a realtor in Miami, is no exception. She talks about the city’s warm climate and low taxes, both of which have lured a wave of footloose outsiders. For much of the past two years agents enjoyed a bonanza. Buyers fought to outbid each other, waived property inspections and bought units sight unseen; many paid well over the asking price. Then mortgage rates began to climb this year, cooling the frenzy a little. Only houses that were newly renovated or ready to be moved into straight away received multiple offers, Ms Garcia says. Now a fresh spike in mortgage rates seems to have slammed the brakes on altogether.