Elon Musk's Warning on Property Values Sparks Debate Among Experts.

Elon Musk has warned that commercial real estate is in meltdown and house prices will slump due to the Federal Reserve's interest-rate rises. Higher rates mean bigger mortgage costs, making homes less affordable. The shift to remote working since the pandemic also poses a threat to commercial real estate values. Smaller lenders are pulling back in fear of further bank runs, raising the prospect of a credit crunch. Musk stands to gain if real estate prices tank and the Fed cuts rates in response.