Rates Driven by Household Formation for Next Decade, Says Smead

The transcript discusses the impact of millennial household formation on future interest rates, predicting a rise due to increased demand. It compares current low mortgage rates to historically higher rates, emphasizing that 4.5% is low compared to past decades. The discussion also covers market reactions to Fed policies, particularly Jerome Powell's statements, and the anticipation of interest rate hikes in 2018.

What was the market's reaction to Chairman Powell's statements, and how did it differ from expectations?

Discuss the implications of a potential fourth rate hike in 2018 as mentioned in the text.