As we move further into week chock-full of housing market data, it’s worth pointing out once again that the vast majority of new home loans these days come with a guarantee from the government, the chart below from this item at the Congressional Budget Office showing just how dramatically this has changed.
Hopefully, if as projected above we get back to the 60+ percent level of mortgages that are not federally guaranteed by 2020, there will be a little better regulation in place or lenders will act more responsibly than they did last time around in the early-2000s, that is, right up until the housing bubble burst.