Rising interest rates could slow the housing recovery, Bank of America Merrill Lynch Senior U.S. Economist Michael Hanson said Monday.
"It clearly is a risk to the housing outlook because everybody's looking for housing, basically, to be the engine of growth going forward, and it's obviously showing some early signs of pulling back. No surprise in the fact that interest rates are a bit higher," he said.
"I don't think we're fundamentally looking at the housing market stopping a recovery, but I think the pace is going to slow a bit."
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Hanson, a former economist for the Federal Reserve, said that the sector has better days ahead, factoring in such things as pent-up demand.