Prior to covid, ~60% of U.S. households could make the payment on an average house at prevailing mortgage rates. Post-covid, ~40% of households can afford the average house. This chart explains the post-covid angst more than any other I can think of.

The fear of losing ground (i.e. purchasing power) is replacing the fear of losing principle This fear manifests in market structure and consumer behavior. H1 of 2025 accelerated the mindset shift from "deflation to debasement." Excerpt from this week's @3F_Research report.