So… Is the plan to increase the housing supply by making people default on their mortgages?

I mean, I am joking, mostly… But there is a point that raising interest only goes so far. It helps reduce demand on luxury goods, for instance, you might not want to take out a loan to buy a new car right now. However, when goods are already in a supply crunch, or the goods are necessary for life and people can’t ‘opt out’ of buying them, raising interest too much starts to hurt peoples’ ability to meet basic subsistence.

Then again, what are the other options? Just let inflation run rampant?