Duncan: Market Strong Despite 'Tiny Bubbles'

Overall conditions in the mortgage market remain "fundamentally strong" even though there may be "tiny bubbles" of concern in certain areas, Mortgage Bankers Association chief economist Doug Duncan told attendees May 4 at the MBA's National Secondary Market Conference.Mr. Duncan said small housing bubbles may exist in markets that have not only high home price appreciation, but also high volumes of interest-only purchase loans, large amounts of stated income/alternative-A credit mortgages, and numerous home purchases in which buyers quickly "flip" the houses for a profit soon after purchase. Mr. Duncan said that, despite this, in general the national mortgage market is healthy. But it is unlikely to match last year's phenomenal heights, he said. The MBA can be found on the Web at http://www.mortgagebankers.org.