Market commentator Bull Theory highlighted Morgan Stanley's latest housing outlook on Sunday, saying the firm sees little chance of U.S. housing affordability returning to pre-2022 levels even under more favorable mortgage rate scenarios.
Morgan Stanley Sees Affordability Staying Elevated In a post on X, the market commentator said Morgan Stanley modeled mortgage rate scenarios of 4%, 5% and 6%, with housing affordability failing to return to pre-2022 levels in each case.
In Morgan Stanley's base case, mortgage rates ease toward 5%, but mortgage payments would still account for about 21% of household income, well above the historical average of around 15%.
MORGAN STANLEY SAYS AMERICANS MAY NEVER SEE CHEAP HOUSING AGAIN.Morgan Stanley modeled three paths for mortgage rates, 4%, 5%, and 6%.
In all three, affordability never returns to pre-2022 levels.Here's why.
