Home affordability at 2007 bubble levels, but crash is unlikely: Blackstone’s Joe Zidle

A major Wall Street firm is drawing a parallel to the housing bubble.

The homes are almost as expensive as they were in 2007. He thinks a crash is unlikely because most owners aren't using their homes like ATMs.

The firm's chief investment strategist told CNBC that many people went upside down.

Home equity is at an all-time high and household balance sheets are strong.

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The 2008 financial crisis caused a lot of distressed residential properties to be bought by the private equity firm. It is still a major player in real estate, with investments in rentals, rent-to- buy and student housing.

I think you end up having less risk because you have very little excess in housing.

The jobs market is strong.

He said that housing is more correlated to labor markets than to mortgage rates.

Wall Street gets ready for key reports on the consumer and housing this week. Walmart, Home Depot, Lowe and Target are some of the major retailers. Home sales and builder sentiment are due.

The call reflects a year. He thinks the Federal Reserve will hike interest rates deeper into next year than the Street thinks.

The Fed is going to have to raise interest rates until something breaks.

The 10-year Treasury Note yield is expected to go up. He expects the housing market to handle it. So far this year, it was around 2.8% on Monday.

Home prices might flatten out. There are pockets of weakness where home prices might fall.

There is no truth to this.