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Are we heading toward a Housing Bubble?

Eric Humes

Eric Humes is the Broker /Owner for Rooftop Realty...

Eric Humes is the Broker /Owner for Rooftop Realty...

Nov 1 1 minutes read

Are we heading toward a Housing Bubble?

 Sean Becketti, an economist for Fannie Mae, said he is not yet worried about house prices approaching another bubble. The normal median price to median income ratio is 3.5%, with 4.1% being the point where it is an outlier. The current ratio is 4%.

However, consumer credit conditions are not deteriorating and mortgage loan underwriting remains conservative. Plus the amount of leverage on the typical consumer's balance sheet is not increasing, he said.

Homeowner equity is on the rise, while the total amount of mortgage debt outstanding is flat, a sign that consumers are not increasing their leverage.

Read more from his post here: https://www.freddiemac.com/news/blog/sean_becketti/20160104_housing_sector.html

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