The New CS Board

[jumanji0881]

Americans aren't likely to lose their homes if the real estate bubble bursts, 2 economists say : https://www.msn.com/en-us/money/realestate/americans-aren-t-likely-to-lose-their-homes-if-the-real-estate-bubble-bursts-2-economists-say/ar-AAW0WGs?ocid=msedgntp&cvid=c184004ef1bf406c83e341cdab3b599a

My Comment: Hmm. Reason #1-Household debt-to-income at four decade low (What if you get laid off and you lose your income ?) Reason #2-Household equity at three decade high (What if house prices plummet wiping out equity in a recession due to a lack of buyers ?). A lot of home equity is just bubble excess.

Excerpts:
Home prices have soared to new highs as buyers continue to duke it out for the limited amount of homes available for sale. As the imbalance widens, fears of a second foreclosure crisis, like the one in 2008, have flooded financial markets

Odeta Kushi, the chief economist at First American, thinks that's unlikely to happen for two reasons. Both have to do with the fact that homebuyers are in a far better financial position than they were in 2008.

"First, the housing market is in a much stronger position compared with a decade ago," Kushi told Insider. "Accompanied by more rigorous lending standards, the household debt-to-income ratio is at a four-decade low and household equity near a three-decade high."