Morgan Stanley analysts previously expected national home prices to fall 4% in 2023, as the housing market continued to crater, and reaffirmed their pessimistic forecast in April of this year. But the analysts recently changed their tune in a big way: They now say housing prices could rise up to 5% for the year.
The reversal, made in a research note earlier this week, comes as mortgage rates continue to rise, hitting 8%, the highest level since 2000. The increase has had a profound impact on the housing market, but not necessarily as many people had expected.
