After three decades of stability, the national rate of homeownership suddenly began rising in the mid-1990s, going from 64% in 1994 to 69% in 2004. But new research published by the Federal Reserve Bank of Atlanta concludes that the bulk of the increase was caused by looser mortgage-lending practices rather than demographic factors such as more households of home-buying age.rnThat raises an important question: How much of the growth in homeownership is sustainable now that lending standards have tightened? There's no reason to expect all the gains to disappear, but some economists say the Atlanta Fed study points to more trouble ahead for the reeling housing market.
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