Experts predict no housing market crash despite rate hikes and pandemic.

Morgan Stanley analysts predict that home prices will remain flat for the rest of the year, instead of declining as previously expected. The lack of inventory remains the biggest factor in the housing market, with 39% fewer homes for sale compared to before the pandemic. High mortgage rates have discouraged homeowners from listing their homes, which has dented sales in the resale market. However, new residential construction for both single- and multi-family units climbed 21.7% in May, and new home sales gained 4.1% in April. Existing home sales are expected to lag behind new home sales due to a large share of homeowners remaining locked into low mortgage rates.