According to The Street, there are 10 reasons why we can dismiss the idea that a real estate crash is right around the corner, despite record real estate prices.
For one, most Americans have refinanced to fixed-rate loans. “As a result, the impact of interest-rate shock when short-term ARMs readjust will be minor, compared with what happened in 2008-2009,” writes Chris Leavitt for The Street.
Moreover, loans in foreclosure are at the lowest level since 2007, and interest rates are likely to remain low for the foreseeable future.