Investor Peter Boockvar is sounding the alarm on a housing price bubble brought on by the Federal Reserve’s Covid pandemic policies.

He warns first-time homebuyers are most vulnerable to dramatic losses.

“I feel bad for the people who bought homes over the past year because they’re the ones that paid the very elevated prices,” the chief investment officer at Bleakley Advisory Group told CNBC’s “Trading Nation” on Thursday.

He singles out those who put down 5% amid historically low mortgage rates. If home prices correct by 10%, Boockvar sees a world of pain.

‘Their equity is basically wiped out’

“Their equity is basically wiped out,” he said. “For those who have owned for a while that have built up equity, they will be much more insulated.”

His warning comes as Fed policymakers convene virtually for the annual Jackson Hole, Wyoming, symposium.

Boockvar, who went on inflation watch in mid-2020, has been critical of Fed policy through the pandemic. By maintaining unprecedented quantitative easing measures through the economic recovery, he notes the central bank created a spike in housing demand that has been overwhelming supply. The result is skyrocketing prices.