We’re at this part of the movie with, but with home prices

Housing market set for the ‘worst year in decades,’ says Meredith Whitney

  • Worst Year in Decades: Analyst Meredith Whitney expects 2025 to be the housing market’s most challenging year in decades, with existing home sales projected around 4 million—or possibly fewer.
  • Federal Reserve Policy: Despite economic concerns and pressure from President Trump, the Fed is pausing interest rate cuts, which Whitney believes won’t help the housing sector.
  • Generational Divide: Roughly 60% of existing homes are owned by those over 60, while younger potential buyers struggle with high rent, student debt, and rising property taxes and insurance.
  • Mortgage Rates Still High: NAR economist Lawrence Yun attributes sluggish sales to elevated mortgage rates, saying lower rates could reignite housing activity and benefit workforce mobility.

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