Dive Summary:

• Morgan Stanley has issued a forecast that sees housing prices likely to finish the year 7% to 9% higher and perhaps even up 10% to 12%.
• Part of the investment firm's reasoning is that the ongoing tight credit market will have to break free at some point to meet demand, and home prices will keep rising when that demand comes into the market.
• The company also sees the Federal Reserve's continuation of low interest rates as encouraging home buying for the foreseeable future.

From the article:

Investment house Morgan Stanley ($16.89 0.095%) is pretty confident about the housing recovery. ...