Earlier in the year, the Chairman of the Federal Reserve indicated that interest only loans were of “particular concern” and [the OCC began to review the economic risk of these products to the housing market [Washington Post]](http://www.washingtonpost.com/wp-dyn/content/article/2005/06/16/AR2005061601466_pf.html) but wanted to be careful about overreacting.

Source: CNN/Money

With the significant growth in interest only mortgages over the past 5 years, “the Office of the Comptroller of the Currency, along with other financial regulators, will issue guidelines for mortgage lenders that could make lenders think twice before readily [offering exotic mortgages [Marketwatch]](http://www.marketwatch.com/news/print_story.asp?print=1&guid={C89CAA01-10E3-4DE1-8817-AD3402B198CC}&siteid=mktw) to potential buyers.”

[This may help stabilize the housing market by limiting easy access to credit [CNN/Money].](http://money.cnn.com/2005/10/21/real_estate/exotic_mortgages_prices/) Fewer buyers competing for the same property means more balance between supply and demand.

Lets review:
Few buyers to qualify for mortgages[More properties available for sale [Matrix]](http://matrix.millersamuelv2.wpenginepowered.com/?p=180)

Housing market cools…