The 'oracle Of Wall Street' Says Prepare For A Prolonged Housing Slowdown As Rates And Home Prices Refuse To Budge

• Meredith Whitney says the US housing slump could stretch on through 2027.
• The veteran forecaster sees signs that supply will remain tight.
• A 2008-style correction in home prices is "absolutely" out of the question, she added.

One of the forecasters renowned for calling the last housing crash has some bad news for buyers: the market isn't going to get more affordable anytime soon.

Meredith Whitney, the "Oracle of Wall Street" who was among the analysts that rose to fame in "The Big Short," says she isn't expecting the yearslong US housing slowdown to pick up anytime soon. While home sales have dropped sharply in recent years, that won't be enough to lower mortgage rates or home prices — meaning the deep freeze in housing activity could stretch on for at least the next year without improvement, she told Business Insider in an interview this week.

2026 is on track to be the weakest year for home sales since 2011, according to one estimate from Capital Economics. Whitney said she expected 2027 to be at least "just as bad" as 2026 for home sales.

"I don't see it improving dramatically anytime soon," she said, adding that a 2008-style correction in home prices was "absolutely" out of the question despite the slowdown in sales and waning demand from buyers.

"To see home prices coming down dramatically, you'd have to see more supply than demand, and that dynamic just doesn't exist," she added.

The housing market has been trapped in a years-long sales slump, with buyers pulling out of the market as home prices have soared in. Mortgage rates have also surged, making homeowners hesitant to sell and finance a new purchase at higher rates.

The S&P Cotality Case-Shiller US National Home Price Index has appreciated 59% since the start of 2020.

Meanwhile, the average 30-year fixed mortgage rate broke through 7% for the first time in years in September, and is hovering above 7.5% in the last week.

The hope for some prospective buyers is that sales will eventually slow to a point that causes prices to fall. But the conditions to create that dynamic don't exist, Whitney said, pointing to factors that should keep prices elevated for the foreseeable future.

1. Supply remains tight overall

There are some areas in the US where prices are coming down, but those are anomalies where supply was overbuilt during the pandemic, Whitney said. That differs from areas like the northeast, where supply is tight.

The total housing supply deficit grew to over 4 million homes at the end of 2025, according to one Redfin estimate.

2. High mortgage rates are preventing inventory from hitting the market

Many homeowners are clinging to low mortgage rates, keeping them from listing their home. Around 78% of borrowers had a mortgage rate below 5%-6% at the beginning of 2026, a Realtor.com analysis found.

3. Baby boomers aren't keen to downsize.

Many older Americans, who are sitting on the majority of home equity in the US, are looking to age in place given how high home prices have risen, Whitney said, another reason she doesn't see supply increasing anytime soon.

68% of boomer homeowners said it was likely they would age in their current house, according to a 2024 Freddie Mac survey.

4. More people are taking out revolving home equity loans.

Whitney pointed to one under-the-radar indicator: weekly HELOC volume, or the weekly volume of revolving home equity loans. Higher HELOC volumes are considered a sign that people will remain in their homes, Whitney said, noting that many people use HELOCs to fund renovations or home improvement projects.

HELOC volume was $291 billion the week ending September 23, up 13% over the last five years, Fed data shows.

"There's no shoe to drop in housing," she added about the state of the housing market in general. "Prices aren't coming down."

While higher home prices and rates remain obstacles, the market has shifted to favor buyers in recent months, with sellers offering more price cuts and concessions as inventory sits on the market. Around 45 of home sales in August involved a seller offering a buyer concessions, and 16% of home sales involved a seller offering concessions and a price cut.