Yeah, not going to be great for him.
A few more interesting stats:
Right now, for the first time ever, the cost of new homes is the same as existing homes. This is an artifact of the reality that existing homeowners (as a group) never *have to* sell, but homebuilders do. So the rate increases have killed off the existing home sales (too expensive for buyers, and most sellers can't/won't trade a 3% mortgage for a 7% mortgage), leaving new homes as the "best" option.
Homebuilders are doing mortgage buydowns to incentivize sales without lowering prices. If they lower prices, that sets the new value for all remaining homes (even the localities would hate this, as it would depress property taxes. Everyone is aligned against the homebuyer). So they pay the bank you drop the mortgage rate, 5.5% seeming to be the magic number for a lot of buyers. If we operate on the reality that most homebuyers base their budget on the monthly payment, not the home price, then a drop from 7.5% to 5.5% has the same effect as dropping the price of the home by ~19%. How do you think the market would react if the narrative for the housing market had a 20% loss of value in one year nation wide?
Investor buying is falling off a cliff. The average cap rate (profit) on renting these homes out is now a percent or so below the risk-free rate of treasuries. It's about equal with the 10-year note. So... run a portfolio of thousands of homes that require maintenance, management, and renters, with the risk of losing value if the market drops, or just buy US treasuries and sit on them? Easy math...
Home prices in the last bubble didn't drop for about two years after the sales dried up. Housing moves slowly, but we have a huge percentage of investor-owned homes now, so the drop could be steeper with more owners capable of quick sales. And if things turn, he who panics first profits best.
This doesn't have to happen, but the alternative is massive inflation to bring our wages up to levels that can normalize these prices. The US government will benefit massively from inflation because it will diminish the debt, but that assumes they survive the usually-associated social upheaval that follows large inflation.