Part 9/16:
Refinance & Equity Boom: Many homeowners have pulled out cash via refinancing during the boom, increasing debt levels. Should prices decline, many could be underwater, risking increased foreclosures.
Potential Policy Changes: Governments are contemplating extensions or modifications of forbearance programs, or even new programs like a $15,000 first-time buyer credit, which could artificially inflate demand further.
Rising Borrowing Costs: If interest rates climb—either due to inflation or Federal Reserve policy—monthly payments will increase, discouraging potential buyers.