Tighter credit regulations mean current housing boom is not a bubble

While nonbank lender-originated mortgages may make up a greater share of mortgages today household leverage is declining

By Peter Fabris, Contributor | December 9, 2015

Due to more stringent rules governing access to mortgages, the current boom in housing construction doesn’t appear to be a bubble like the one of the mid-to-late 2000s.

“While nonbank lender-originated mortgages may make up a greater share of mortgages today, as the Los Angeles Times reports, household leverage is declining,” says The Atlantic’s City Lab. “So the slice of pie insured by the Federal Housing Administration may be bigger now, but the size of the whole pie isn’t growing irresponsibly larger.”

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