The housing market's lock-in effect could last into the next decade as mortgage rates stay high even with Fed cuts, BofA says

Model house locked with chain (Credit: Getty Images)

The lock-in effect that has kept U.S. housing market activity subdued probably isn't going away this year or next year or even the year after that.

It could hang over prospective buyers and sellers of existing homes for six to eight years before finally going away, Bank of America warned in a note on Monday, locking down the market into the next decade.