The US housing market is “stuck and we are not convinced it will become unstuck” until 2026 — or later, according to economists at Bank of America.
“This will take many years to work itself out. There isn’t a magic fix,” Michael Gapen, head of US economics at Bank of America, told CNN.
The news it delivered was uniformly grim for homebuyers. Home prices will stay high and go even higher, it said, while inventory will remain scarce. It doesn’t expect mortgage rates to fall much either — even if the Federal Reserve finally delivers long-delayed interest rate cuts. (Although it should be noted that mortgage rates have declined for four consecutive weeks, inching down to 6.86% from 6.87% a week prior, according to Freddie Mac).
Source: BoA Has Grim News for Homebuyers
