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- The US housing market looks like it's headed for a recession, Wells Fargo has warned.
- Mortgage spiking to nearly 8% will cause homebuying to plummet, according to the bank.
- Strategists compared the current situation to the 1980s, when the Fed's aggressive interest-rate hikes also put pressure on the property market.
The Federal Reserve's aggressive interest-rate hikes could be about to trigger a housing-market recession that echoes the slowdown of the 1980s, Wells Fargo has warned.
The central bank has signaled in recent months that it'll keep borrowing costs at a higher level for longer well into 2024 in a bid to quell inflation – and that'll fuel declines in both construction and activity, according to the bank.