BEN BERNANKE: What housing bubble?

The increase in house prices has recently received much attention in the media. While speculative behavior appears to be surfacing in some local markets, strong economic fundamentals are contributing importantly to the housing boom. These fundamentals include low mortgage rates, rising employment and incomes, a growing population, and limited supply of homes or land in some areas. For example, states exhibiting higher rates of job growth also tend to have experienced greater appreciation in house prices. The Administration will continue to monitor these developments. However, our best defenses against potential problems in housing markets are vigilant lenders and banking regulators, together with perspective and good sense on the part of borrowers.

House review
http://www.whitehouse.gov/cea/20050712.html