Just my two cents but the only things I have seen crazier than the 2004-6 bubble era home loans are the current student loans.
I have seen people come out of college with 100K debt to become cooks (well OK chefs) and hotel clerks.
Really hard for me to imagine people paying down these loans in those professions without some serious inflation at some point.

I would think this will have the most impact on birth-rates into the future IMO. (not sure about housing, I would think it would just mean they will build a little less).