The article discusses the current housing market dynamics contrasted with the 2008 crash. Data from the Federal Reserve Bank's Household Debt and Credit Report indicates stability in the housing market, contrary to the expectations of those anticipating a crash. While past housing booms were driven by credit issues leading to high foreclosures, the post-2010 era, facilitated by the qualified mortgage law, has fostered a robust middle class of homeowners. Fixed mortgage rates and rising wages contribute positively to homeownership trends, promoting market stability.
Today, however, the latest Household Debt and Credit Report from the Federal Reserve Bank of New York may not be the love letter you were hoping for.
The demand was present, but it was driven by credit rather than wages, causing the entire housing market to be out of sync with the realities of the economy.
However, one thing was glaring in the data lines back then: We had foreclosures and bankruptcies rise quickly in 2005, 2006, 2007, and 2008.
The qualified mortgage law enacted in 2010 spawned the greatest financial middle class of homeowners in the history of America.
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