Tag Archive: Real estate bubble

The Definition of Insanity

Is government housing policy:

Recent steps by federal regulators make it clear: low down-payment loans, a feature of the housing market’s boom, are coming back.

On Monday, Federal Housing Finance Agency Director Mel Watt announced that mortgage-finance companies Fannie Mae and Freddie Mac would start backing loans with down payments as low as 3%.

And on Tuesday, three federal agencies approved a loosened set of mortgage-lending rules, removing a requirement for a 20% down

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The Bubble Reinflates

This is mildly disconcerting. Megan Mcardle describes bidding wars breaking out over houses in DC. One house had over a hundred offers and prices are heading into the stratosphere again.

I’m not familiar with DC, but I am interested in the general question of whether we are we in danger of another housing bubble. Interest rates are ridiculously low, which tends to drive up housing prices (people who are spending less on debt service … Read more