Dr. Robert Shiller, one of the creators of the famed Case-Shiller Housing Index expresses his concerns about the formation of a new housing bubble in this interview with Fox Business Channel.  At the beginning of the interview, Dr. Shiller points out just how much government policy is supporting the housing market through Fed policy, Fannie, Freddie, FHA and the tax code.   In fact, he is surprised that despite so much support, the housing recovery is not stronger.

More importantly, he points out that when you take into account the record low mortgage rates that have driven the housing market, home price appreciation, in real terms, is more moderate than people think.  Although he is not predicting that home prices will go down in the next year or so, he is concerned that as interest rates return to historical norms, it will have a dampening effect on both the housing market as a whole and home prices in particular.