House prices may climb further – but slide next year if mortgage rates stay at 8%, says top strategist

• US house prices may climb even higher by the end of this year, Morgan Stanley's Jim Egan says.
• However, they could fall by 5% in 2024 if mortgage rates don't drop and transactions are flat, he says.
• The housing expert sees a tailwind from a supply shortage and a headwind from tepid demand.

US home prices might climb even higher by Christmas, but they could slump next year if mortgage rates don't fall, a top-flight housing strategist says.