Bank of America economists believe the current housing market is more similar to the 1980s than the 2008 crash. While there is no evidence of overdevelopment or over-leveraging, tight monetary policy and higher interest rates are causing challenges. The housing market is being compared to the 1980s due to high inflation and rising interest rates. The Federal Reserve's actions have led to an increase in mortgage rates, impacting Millennials' ability to purchase homes. Home prices have grown before flattening out, and existing home sales have decreased. Limited inventory, high prices, and labor shortages continue to pose challenges. Bank of America predicts a rate cut is needed to improve affordability and stabilize the market.