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Troubling signs are coming from the U.S. housing market

Troubling signs are coming from the U.S. housing market

In a note to clients last week, economists at Bank of America Merrill Lynch led by Michelle Meyer said that, “while housing is no longer a tailwind, its headwinds are blowing very slowly.”

“We are making a number of changes to our housing forecasts which reflect a weaker trajectory of sales, starts and home prices,” the firm said in its note. “The revisions largely reflect the decline in affordability — which is likely to continue to deteriorate with further increases in rates — and a shift toward more negative perceptions regarding housing.”

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