With record high appreciation rates for home values, many are worried that another housing bubble may be in the distant future. The last housing bubble was ten years ago. Loosening of standards for mortgage credit was one of the reasons we experienced the housing boom and bust.
The University of North Carolina completed a study right after the crisis and found: "lenders began originating large numbers of high risk mortgages from around 2004 to 2007, and loans from those vintage years exhibited higher default rates than loans made either before or after."
Another study revealed those very risky loans were the reason for the housing crisis. Findings from John V Duca, John Muellbauer, and Anthony Murphy revealed, "Our…