Housing.com News, Analysis & Opinion: Housing Bubble: The Eye of Bernanke

"Our examiners tell us that lending standards are generally sound" and are not comparable to the lax standards that contributed to the savings and loan crisis two decades ago, he said.

"However, more recently, there have been signs of some easing of underwriting standards," Bernanke said in prepared remarks to the Independent Community Bankers of America meeting in Las Vegas.

Ok. maybe there IS something to worry about. But if there is, it doesn't seem to be phasing home buyers, at least in the L.A. region, if this article is any indication:

More than one-quarter of those who have adjustable-rate mortgages say they aren't sure they'll be able to make their monthly payments if their interest rate goes up. These loans have been particularly popular in California and other states with high housing costs.

This just strikes me as wishful thinking. Maybe all of these homeowners should ring up KB Homes and Toll Bros. and tell them to "STOP BUILDING AND LET OUR VALUE APPRECIATE, DAMMIT!!!!"

And if what's going on in Montgomery County, MD is any indication, it seems the lending industry isn't at all keen to tighten its reins just yet. Gotta keep that market churning, after all.

Motivated seller is an understatement! All reasonable offers considered.
Because we've had two contracts fall through due to financing problems on the buyers end, preference is given to buyers with financing already in place. (Emphasis added.)

Indeed, there is "evil here that does not sleep. And the great Eye watches all..."

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The new Fed Chair has his eye on commercial real estate lending. Luckily for us, there's nothing to worry about: "Our examiners tell us that lending standards are generally sound" and are not comparable to the lax standards that contributed to the savings and loan crisis two decades ago, he said. "However, more recently, there have been signs of some easing of underwriting standards," Bernanke said in prepared remarks to the Independent Community Bankers of America meeting in Las Vegas. Ok. maybe there IS something to worry about. But if there is, it doesn't seem to be phasing home buyers, at least in the L.A. region, if this article is any indication: More than one-quarter of those who have adjustable-rate mortgages say they aren't sure they'll be able to make their monthly payments if their interest rate goes up. These loans have been particularly popular in California and other states with high housing costs. This just strikes me as wishful thinking. Maybe all of these homeowners should ring up KB Homes and Toll Bros. and tell them to "STOP BUILDING AND LET OUR VALUE APPRECIATE, DAMMIT!!!!" And if what's going on in Montgomery County, MD is any indication, it seems the lending industry isn't at all keen to tighten its reins just yet. Gotta keep that market churning, after all. Let's take a look at some random real estate prices for D.C., via Craigslist. Hmm, here's an interesting choice: Motivated seller is an understatement! All reasonable offers considered. Because we've had two contracts fall through due to financing problems on the buyers end, preference is given to buyers with financing already in place. (Emphasis added.) Indeed, there is "evil here that does not sleep. And the great Eye watches all..."