Bank of America Analysts Predict Stable Housing Market Despite Rising Mortgage Rates
Bank of America analysts believe that the current housing market is not headed for a crash like the one experienced in 2008. They argue that the market is more reminiscent of the 1980s, with no evidence of overdevelopment or over-leveraging. However, they caution that there may be turbulence ahead due to tight monetary policy and high mortgage rates. The housing market is facing challenges such as limited inventory, high prices, and labor shortages, which are impacting affordability. Bank of America expects rates to rise in November and then be cut in June of next year, but they emphasize that a stable and healthy housing market will require improved affordability through rate cuts.