Bank of America Economists Say Housing Market More Similar to 1980s than 2008 Crash
Bank of America economists believe the current housing market is more similar to the 1980s than the 2008 crash. While there is no evidence of overdevelopment or over-leveraging, tight monetary policy and higher interest rates are causing challenges. The housing market is being compared to the 1980s due to high inflation and rising interest rates. The Federal Reserve's actions have led to an increase in mortgage rates, impacting Millennials' ability to purchase homes. Home prices have grown before flattening out, and existing home sales have decreased. Limited inventory, high prices, and labor shortages continue to pose challenges. Bank of America predicts a rate cut is needed to improve affordability and stabilize the market.
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00:00 It's Benzinga and here's what's on the block.
00:02 Bank of America economists believe that the current housing market is more similar to
00:06 the 1980s than the 2000 and A crash.
00:08 While there's no evidence of overdevelopment or overleveraging, tight monetary policy and
00:12 higher interest rates are causing challenges.
00:14 The housing market is being compared to the 1980s due to high inflation and rising interest
00:19 rates.
00:20 The Federal Reserve's actions have led to an increase in mortgage rates, impacting millennials'
00:23 ability to purchase homes.
00:25 Home prices have grown before flattening out and existing home sales have decreased.
00:29 And inventory, high prices, and labor shortages continue to pose challenges.
00:33 Bank of America predicts that a rate cut is needed to improve affordability and stabilize
00:38 the market.
00:39 For all things money, visit Benzinga.com.
00:40 (upbeat music)