Housing Market Slowdown Recalls 1980s more than 2008 Crash, but with Less Risk

Bank of America economists say housing market now more resembles 1980s than 2008 crash due to lack of overbuilding and risky loans.

Fed rate hikes have sharply increased mortgage rates, hurting affordability like in early 1980s when rates doubled.

Home prices and sales dropping but not as much leverage now as in 1980s; prices rose faster than incomes.

Inventory, labor shortages, high prices will be challenges ahead along with affordability.

Bank of America expects bumpy ride for housing until Fed cuts rates, which they see starting mid-2023.