Housing affordability is about to get even worse, thanks to the delayed impact of mortgage rates.
In addition, some housing data come out with a two-month delay, they said on a podcast.
That means that the spike in mortgage rates last month, when they hit the highest level since 2001, will take time to show up in purchases.
Other experts have said affordability is unlikely to improve until mortgage rates dial back more significantly, which probably won't be happening anytime soon.
Markets are expecting the Fed to keep interest rates elevated through the rest of the year as they monitor inflation, which could influence mortgage rates to stay elevated as well.
Persons:
Morgan Stanley, That's, it's, Morgan Stanley's Jim Egan, " Egan
Organizations:
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Locations:
Wall, Silicon