He argues that even if mortgage rates level off or ease a bit this year, “we are unlikely to see the psychology turn around. Homebuyers have woken up to the fact that affordability is a major issue.”
Stack says it’s too early to know if housing is in another bubble, and a lot depends on what happens with the economy. “Unfortunately,” Stack warns, “bubbles are only recognized with 100 percent certainty in 20/20 hindsight.”
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