Posted 1/9/2024, 8:21:36 PM
Mortgage Rate Declines Could Restore Home Affordability Within Months Despite Ongoing Price Rises
- Morgan Stanley sees home affordability improving to 2021 levels by next month due to lower mortgage rates
- Home prices continue to reach new highs, up 4.8% year-over-year in October
- Morgan Stanley's home price forecast of a 3% drop through 2024 is unchanged despite affordability gains
- The bank predicts existing home sales up 2.5% and new home sales up 7.5% in 2023
- For-sale inventory has stopped declining and months supply is at highest level since May 2020