US home prices could tumble nearly 20% and Fed economists warn further rate hikes risk an even worse housing correction: 'The bubble hypothesis merits attention'

• Dallas Fed economists warned of a 19.5% housing market correction in a Tuesday research report. 
• In their view, given the steep growth of price-to-rent ratios, among other factors, "the bubble hypothesis merits attention."
• "The possibility of a domino effect, where investors pull out of international housing seeking safety and liquidity elsewhere, also raises concerns of spillovers beyond Germany or the US to the global economy."

The US housing market faces a potential 19.5% correction, and more rate hikes from the central bank could make a crash even worse, Dallas Federal Reserve economists warned in a Tuesday research report.