Tom Lee Identifies Favorable Six-Month Window for U.S. Housing Market

Fundstrat's Tom Lee suggests the housing sector could be entering a favorable six-month window, maintaining a structurally bullish long-term outlook while pointing to affordability as the primary hurdle.
Key dynamics driving the thesis include:
• Structural supply shortages persisting alongside resilient underlying demand
• Elevated mortgage rates acting as the main drag on activity, with pressure expected to ease over time through loan resets
• Improving risk-reward conditions if cooling inflation prompts a less hawkish macroeconomic environment