Housing Bubble? Not According To Economists
According to the chief economist at Freddie Mac, the signals don’t show a housing bubble
Since 2008, it’s been on the tip of everyones tongue. Will there be another housing bubble? The answer is probably yes, but experts don’t seem to think anytime soon.
“Home prices are up, but that by itself is no indication of a bubble; you need an element of speculation or credit financing involved as well,” Dr. Ken Liefer says. “We looked at credit, capacity and collateral. In the mortgage space, credit has not expanded in anything like we saw a decade ago. As a result, the default potential rate is pretty low. And we clearly don’t see the types of financing products that pushed the dynamics then.”