There have been some dovish signals the last few days from Fed officials. This could be great news. It would have been even more effective to signal more dovish intentions long ago, and to pull back when necessary. Instead they have tended to be hawkish before shifting to dovish positions as the consequences of their hawkish stance have become apparent. This is certainly a lot better than being hawkish and remaining so, in light of the evidence. And it may be the best we can expect, given so many hawkish views among traders, economists, and the broader public.
Bond markets seem to be reacting as I would expect, with short term rates falling and long term rates holding firm. I would expect some positive response from equities, which isn't apparent today.
This sort of context is where I see potential trading gains among homebuilders, because the idea that home values and housing expansion is a product of mortgage rates and the demand that low rates encourage is highly overestimated, in my opinion. The growth in housing will come from general monetary expansion, including more non-credit demand and the continuing accumulation of positive home equity. Mortgage availability is a constraint, but that constraint has little to do with rates or demand. This may cause bullishness among homebuilders to be less forward-looking than it should be.
If the Fed can sit on their hands for just a little while, and natural rates can get above the target rate, we might be able to get a regime shift where the status quo would be accommodative instead of constraining, where the Fed could be seen as hawkish by following natural rates up, when in fact they might be neutral or dovish. That would be a welcomed change of pace.