Why a 2008 housing crash can’t happen again

Since 2012, every year we have heard that it’s about to be 2008 all over again for the housing market, as people try to get attention by implying home prices are going to crash like they did starting in 2007 and ending in 2011.

However, the housing credit markets have changed in such a fashion that it is impossible to have the same credit markets we did in the run-up to the housing bubble crash. Today, I want to explain why it can never be housing 2008 ever again and why you don’t need to worry about a credit crisis like the one that created the Great Financial Recession.

1. Regulation

The biggest changes for housing and the U.S. economy were the 2. The 30-year fixed rate mortgage

A staple of the housing bubble boom in credit was Conclusion

There are a lot of other economic variables that look different than housing in 2008, such as the massive amount ofHowever, just focusing on the two regulation changes above explains where the housing market is today. If we didn’t have those laws passed and our housing market lived off ARM adjustable loans, then the housing economic discussion would be much different. This is not the case, nor will it ever be again, unless we change the regulations or abolish the 30-year mortgage.

As a country, we have been able to weather a lot of storms since 2010. I believe a big reason for that is these two regulation changes.