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Now we have buyers taking on riskier loans - if values drop - this will make things worse.

Buyers are having to pay more and more for homes as a result of the low inventory. To do so, they are having to resort to more risky loans - and they are doing it in record numbers. We will also take a look at pending home sales numbers and how much home prices have increased with Augusts latest numbers. Links:

• http://www.zerohedge.com/news/2017-09-27/pending-home-sales-plunge-nar-admits-housing-market-has-essentially-stalled
• http://www.calculatedriskblog.com/2017/10/corelogic-house-prices-up-69-year-over.html
• https://www.cnbc.com/video/2017/10/03/homebuyers-rush-to-riskier-mortgages-as-home-prices-heat-up.html

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