housing price inflation relative to consumer credit and consumer wage inflation is literally at 06-07 levels.

mortgages aren't the faulty underlying asset here - consumer credit is - most of that being comprise of auto loans and credit cards, with student loans making up a significantly larger share year over year. Houses are getting too expensive relative to debt/income ratios.

this is a problem because housing prices will go flat/down, then overleveraged landlords and developers will be underwater with their ridiculous "5-10% down" mortgages w/ PMI and shitty premium. Then they won't have the cash to take the loss and pay the lender when they sell.

and no one is talking about it / no one gives a flying fuck. houses in my area are up 84% in the last 5 years. wages are up 3.3%

provided that forbearance leniency isn't extended further, this should start to unwind in october. Even with covid-19 improving, i do NOT believe the SP500 makes new ATHs for several years.