Not everything is back to normal yet despite the recovery, writes Karan Kaul for the Urban Institute.
There is still much room for improvement when it comes to credit availability (still too tight) and delinquencies that are still overwhelmingly backed by taxpayers.
“With such contradictions and no single indicator of market health, how will we know when the market has recovered enough?” Kaul writes.
Right now, the government still has a much larger share of the market, it’s much harder to qualify for a mortgage, there are fewer mortgages being originated, and the rate of seriously delinquent mortgages is much higher. According to Kaul, if these are reversed, the market can fully recover.
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