Detailed Discussion Through Three Charts Showing This Isn’t A Housing Bubble
                     Detailed 
 D  i s  cussion Through 
ShoTwhrinege  CThhiasr tIssn’t 
A Housing Bubble
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As we are aware that the prices of homes are increasing 
exponentially, some people have started wondering if we are again 
in a housing bubble like earlier in 2006.
 To prove this false assumption let’s take a close look 
at the market data :
1.
The housing market is not in the 
hands of risky mortgage loans
According to Mortgage Credit Availability Index (MCAI) 
from the Mortgage Bankers’ 
Association there is an evidence 
mortgage money presence. It is known 
that the more you raise the index, the 
more it becomes to obtain a mortgage. 
And hence as a result the MCAI has 
become 378 in 2004 to 869 in 2006.

2.
Homes are no more ATMS for the 
homeowner’s
Today, homeowners are letting their equity 
build. Tappable equity is a term referred 
to the amount present for the 
homeowners to have right of entry 
before hitting a maximum 80% 
combined loan-to-value ratio but still 
leaving them with at least 20% equity. 
In 2006, that number was $4.6 billion 
and now it's $8 billion.

3.
The time supply and demand is all 
that matters
During the housing bubble builders were also 
continuously involved in building projects 
which eventually declined in the next few 
years. According to Sam Khater, VP and 
Chief Economist, Economic & Housing 
Research at Freddie Mac, also states 
that this pullback is hence one of the 
reasons for lack of available inventory 
today. 

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