Welcome to Thoughts on the Market.

I'm James Egan, co-head of US Securitized Products Research for Morgan Stanley.

And I'm Jay Bakko, the other co-head of US Securitized Products Research here at Morgan

Stanley.

And on this edition of the podcast, we'll be talking about the path ahead of for US

home prices, considering both how quickly they've been climbing and also the rising

rate in the environment.

It's Thursday, March 4th, at 11 a.m. in New York.

So Jim, when we look at recent home price data, we haven't seen an increase this

fast since prior to the great financial crisis.

Are we headed towards another housing-led financial crisis here?

No.

I wanted to answer that question first before going into some of the details.

But look, in some ways, the growth we've seen in home prices is even more impressive

today than it was in the early 2000s.

Now, there are a lot of reasons for us to believe that the housing market's in a very

different place today.

But two of the reasons we want to hit specifically are credit availability and the supply of housing.

Now, I'll talk about credit availability a little bit here.

When we think about what led to the housing crisis in 2006, 2007, 2008, the first thing

that's going to come to a lot of people's minds is the fact that we extended mortgage

credit.

...