Housing Market: Prepare for 2 More Years Of Pain
Housing Market: Prepare for 2 More Years Of Pain
Bank of America CEO Issues Dire Warning for Housing Market: Prepare for 2 More Years of Pain. That's really not news home buyers want to hear. Home prices are up right now and mortgage rates are soaring. Until things change, home buyers might continue to struggle. And unfortunately, it doesn't look like housing market conditions are about to get more favorable for buyers anytime soon. Moynihan pointed to sky-high mortgage rates as a big reason buyers might continue to struggle -- especially first-time buyers with more limited financial resources. Until housing inventory picks up to a notable degree, home prices are likely to remain high. And as mortgage rates present affordability issues for buyers, some might choose to exit the real estate market for the time being. If those things happen and there are fewer buyers to compete with, it could do the trick of bringing home prices down to more affordable levels so that even if borrowing rates remain high, homeownership is attainable.
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