That "all time high" comes about as a result of shyster loans (interest only, no down payment, no verification of employment) that have driven up prices to the point that those types of loans are the only way people can afford the high-priced homes in some areas of the country. If it were harder to get loans, then home prices would fall and more people could afford the normal loans. It's like how cutting taxes will increase government tax revenue. It's counterintuitive, but that's how it works. Your theory of writing hot checks and living high off of the proceeds of them works in the short term, but is not a great long-term strategy for managing the healthiness of either a personal economy or the national economy.
And for me, there's no sour grapes at all. I bought my home with 20% down to avoid the PMI, got a 30-year fixed rate loan, and only bought what I could afford. And since I live in a part of Texas where the prices haven't been speculated into the stratosphere, the value has gone up every year since, because there is no bubble to come down from.
Those ‘shyster’ loans are but a small percentage of all loans made.
Home ownership is at an all time high because people can afford homes due to a robust economy.
Supply and demand at work will drive prices up.
Home prices will always trend upward so long as population expands and inflation exists in an economy. Making homes harder to purchase by increasing the cost (20% down) will have negligible effect as people will still have to live SOMEWHERE. Rents will go up, less property will be available for rental (shortage) and investors will purchase homes to rent to families who do not have the 20% entry point.
Let’s try loose the Mr. Potter mindset, eh?