There was a government takeover of the residential mortgage sector. Private companies today largely act as agents for GSEs, the Fed, or other parts of the gover

There was a government takeover of the residential mortgage sector. Private companies today largely act as agents for GSEs, the Fed, or other parts of the government. They originate mortgages, package them, and service them but the government sets rates, underwriting rules, and holds the risk. Thus it was very easy for it to reinflate the bubble far beyond where it was in 2007 (check out case-schiller https://fred.stlouisfed.org/graph/?g=It55 https://fred.stlouisfed.org/graph/?g=It55). If prices look like they are about to stall keep an eye out for the introduction of the low rate 50 year fixed rate mortgage. Whatever it takes to keep incumbent homeowners receiving endless windfalls.