Commentary The historically hot U.S. real estate market is at a crossroads. The Federal Reserve finally raised interest rates in March in an effort to combat soaring inflation. The average mortgage interest rate has, unsurprisingly, also increased to the highest level since 2019. After average 30-year rates hovered in the 3 percent range in 2021, average rates are now more than 4 percent. That’s bound to take the steam out of the real estate market, right? Maybe. The usual central bank playbook tells policymakers to raise rates to decrease demand and therefore temper prices. But today it’s a bit more complicated than that. The market is supply-constrained, both in terms of housing as well as consumer products. This is a market that historically we have rarely encountered. Higher mortgage rates should make homes less affordable. Borrowers pay more in their monthly payments for the same house. On a $400,000 mortgage, …