Possible scenario
Price Correction Accelerates
22% Chance
Record-low affordability finally forces more sellers and builders to reduce prices. The correction improves entry points for buyers over time, but the near-term effect is weaker household wealth and lower collateral values.
Initial impacts
- Riskier companies' borrowing costs Up
- 10-year Treasury yield Down
- Market volatility Up
Secondary impacts
- Finance -0.8%
- Consumer Cyclicals -0.5%
- Non-Energy Materials -0.3%
Portfolio impact
S&P 500-0.5%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
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