"Morningstar's Bold Prediction: Housing Market Affordability to Return by 2025"

Morningstar predicts that housing market affordability will be restored by 2025, primarily due to falling mortgage rates. They expect the average 30-year fixed mortgage rate to decline from 7.14% currently to 4.00% by 2025. Morningstar also forecasts a mild correction in home prices, with a projected decline of 6% for new homes and 4% for existing homes from 2022 to 2024. They attribute this to factors such as an aging population and slowed productivity growth, which will put downward pressure on long-term rates. However, it's important to note that mortgage rate and home price forecasts are subject to uncertainty given the current economic conditions.