A higher-for-longer rate environment could signal a rough patch ahead for the housing market, according to Bank of America. "No crash in sight, but potential turbulence ahead," wrote economist Jeseo Park in a Thursday note to clients, noting that recent developments in the housing market have been cause for concern. Meanwhile, a "lock-in effect" is leading many homeowners to hold onto their properties, contributing to a "squeezed" existing homes market into next year. "At first blush this difference may seem concerning, but one explanation is that the speed of home price growth has exceeded income growth over the years," Park wrote. "Nevertheless, we remain cautious of potential turbulence ahead," Park wrote.

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Persons: Jeseo, — CNBC's Michael Bloom Organizations: Bank of America, Federal Reserve