Jim Egan

Jim Egan, a Morgan Stanley housing strategist known for his insights on mortgage trends, dives into the current state of the American housing market. He highlights the stark divide between homeowners with ZIRP-era mortgages and those without, revealing how low, stable payments have insulated some from financial strain. Egan also discusses rising inventories and the potential for a nationwide price downturn, emphasizing the complexities of consumer debt amidst high interest rates and evolving mortgage dynamics. It's a captivating look at today's financial landscape.

Jim Egan, Morgan Stanley's U.S. housing strategist, dives deep into the housing market's current dynamics. He discusses the surprising resilience of home prices despite soaring mortgage rates nearing 8%. The conversation reveals a looming affordability crisis for buyers, the notable 'lock-in effect' for existing homeowners, and the importance of increasing market supply. Egan emphasizes how rising rates could reshape buyer behavior and impact future price movements, suggesting a cautious optimism amidst challenging inventory levels.

Jim Egan, Morgan Stanley's US housing strategist, sheds light on the current state of the housing market amid soaring mortgage rates. He discusses the dramatic collapse in mortgage affordability and the sticker shock new buyers face today. Egan argues that while high rates will deter many, a significant influx of homes for sale is unlikely, as most homeowners are not compelled to sell. Instead, the housing market is set for a shift in activity rather than a price crash, with a focus on the resilience of fixed-rate mortgages.