Fannie Mae Sees Signs of Housing Market 'Bust'

"In a presentation prepared for a National Association of Home Builders meeting May 5, Fannie Mae's Thomas Lawler (senior vice president for risk policy) said housing-market conditions in many areas mirror past conditions that preceded regional housing busts...Lawler said a number of lending patterns over the past year are similar to those seen in the late 1980s, the 'boom' of the most recent 'boom/bust' cycle. Among those patterns are increased buying by investors, 'unrealistically high consumer expectations' that home prices will rise, 'creative, riskier financing' for homes and a higher share of adjustable-rate mortgages."