Housing Market Echoes 1980s as High Rates Stall Millennial Homebuyers

The current housing market has striking similarities to the 1980s when mortgage rates doubled due to high inflation.

Key factors are high inflation, surging mortgage rates, and strong demand from millennials entering prime home-buying age.

Prices are unlikely to rise further and could fall slightly, but not crash like 2008. Affordability is a challenge with high rates.

In the 1980s prices flatlined after surging, similar to the recent boom and current slowdown. Sales plunged over 50% then versus 40% now.

Bumpy ride ahead as high prices and rates strain affordability, but no signs of overbuilding. Market should stabilize once rates fall.