Originally Posted by vtec to vvel

I used to get this one A LOT. Good News: There is no housing bubble, at least not to the likes of the late 2000's. What imaginary bubble is there to burst? It was a completely different market and environment then compared to now.

Then: too much supply (from excess foreclosures) and not enough buyers.
Now: too little supply and too many buyers, even with rate increases. Being on the tail-end of COVID, there may be foreclosures coming up, but, will only feed into the supply shortage.

Also, mortgage lending was not regulated then and heavily regulated now. You so much as sneeze the wrong way and the Underwriter is already re-auditing the file.



EDIT:
I had a client that barely qualified for a mortgage and really wanted to be a home owner. He was the type to live off of credit cards/loans and barely had anything left after all expenses paid. 2 years later, he called and said he may need to sell because he's barely staying afloat. He made all his mortgage payments on time and was able to build equity fast (he also put more than the min. down payment when initially buying), so instead of him selling, we did a cash-out refi. Yes, his rate went from 2.25% to 7.75%, and yes, his mortgage went up about $500/month, but, he was able to decrease his net monthly total outgoing by nearly $4K by using the cash-out refi funds to pay off toxic debt.