Morgan Stanley: Soaring Mortgage Rates To Bring More Pain For Homebuyers As Affordability Hits Crisis Lows

Morgan Stanley now sees more pain ahead for homebuyers as mortgage rates hit 8%, reducing affordability.

Tight supply is propping up prices as owners don't want to give up lower rates by selling.

Morgan Stanley calculates monthly payments on median home are up 38% with 8% rates.

Affordability is now the worst in decades, exceeding even the 2008 crisis.

Morgan Stanley sees prices flat to up 5% this year, reversing earlier forecast of 10-20% price drops.