Bank of America is optimistic and does not foresee a negative scenario similar to a real estate crash similar to the events of 2008. According to experts' analysis, the current situation is more reminiscent of the trends of the 1980s, when inflationary pressure and the tight policy of the Federal Reserve System determined the trends in the real estate market.
High mortgage rates put some pressure on potential buyers, especially when property prices are rising faster than incomes. However, it is important to note that the absence of oversupply and over-leveraging distinguishes the current situation from that which arose in 2008. Lending standards are currently much stricter, which adds to the stability of the market.
Analysts at Bank of America are predicting a 0.25% rate hike by the Federal Reserve System in November, which will certainly affect the work schedule of many Americans. The lack of opportunity to relax while prices and rates are rising at the same time reflects a relatively unusual economic situation that should be considered in the context of trends of past decades.