Home Prices Forecasts Diverge for 2023 as Mortgage Rates Weigh on Market

Morgan Stanley predicts home prices will rise up to 5% in 2023, reversing previous forecast of a decline.

Zillow has cut its home price forecast twice since August, now seeing just 2.1% growth over the next year.

Zillow cites higher mortgage rates weighing on sellers and limiting buyers.

Analysts say rates could stay elevated if Fed hikes again before year-end.

First American chief economist warns there's a "substantial risk" Fed will need to raise rates further.