Market Decode: Where mortgage rates and home sales could go next

WHY SHOULD INVESTORS CARE ABOUT the housing market, even if they’re not looking to buy a home? “The sector accounts for 16% of U.S. GDP and affects many parts of the economy,”¹ says Lauren J. Sanfilippo, Senior Investment Strategist for the Chief Investment Office (CIO).

Just as high interest rates have led to historically high home prices across the United States, an expected steady normalization of rates in the coming months could bring some relief. In the video above, Sanfilippo details some implications of a potential thaw for the housing market and what that might mean for investors, homeowners and buyers. For more insights into the markets and economy, read the CIO’s weekly Capital Market Outlook. And for tips on helping young family members enter the housing market, check out “Helping the next generation become home owners.”

¹National Association of Home Builders, “Housing share of GDP surpasses 16% for first time since 2022,” April 25, 2024.

Important disclosures

The opinions expressed are as of 8/28/2024 and are subject to change.

Investing involves risk, including the possible loss of principal.

Past performance is no guarantee of future results.

Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. Equity securities are subject to stock market fluctuations that occur in response to economic and business developments. This information should not be construed as investment advice and is subject to change. It is provided for informational purposes only and is not intended to be either a specific offer by Bank of America, Merrill or any affiliate to sell or provide, or a specific invitation for a consumer to apply for, any particular retail financial product or service that may be available.

The Chief Investment Office (CIO) provides thought leadership on wealth management, investment strategy and global markets; portfolio management solutions; due diligence; and solutions oversight and data analytics. CIO viewpoints are developed for Bank of America Private Bank, a division of Bank of America, N.A., (“Bank of America”) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S” or “Merrill”), a registered broker-dealer, registered investment adviser and a wholly owned subsidiary of Bank of America Corporation (“BofA Corp.”).

Before taking out any mortgage or line of credit, borrowers should consult their tax advisor to understand the implications of each of their options.

Banking, mortgage and home equity products offered by Bank of America, N.A., and affiliated banks, Members FDIC and wholly owned subsidiaries of Bank of America Corporation. Equal Housing Lender. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.

Switch to Accessibility Friendly View

Explore what it’s like to work with a Merrill Financial Advisor

Related articles

Is buying a second home on your wish list? Ask these questions first.

Buying a home on one income: What you need to know

Renovate your home without wrecking your budget