Goldman Sachs: Higher Mortgage Rates to Slow Home Sales, Prices and Construction Through 2024

Goldman Sachs forecasts sustained higher mortgage rates, reaching just under 7% by end of 2024. This will cause home sales to drop to lowest levels since early 1990s.

Home prices expected to fall 0.8% through end of 2022, then rise just 1.3% in 2024 as high rates reduce affordability.

Existing home sales to drop sharply due to "lock-in effect" from most owners having rates well below current levels.

Housing starts to decline 4% in 2024, driven by big drop in multifamily construction.

Rent growth to remain strong at 3% annually next couple years despite more rental vacancies.