FWIW I remember sitting at a luncheon with a couple of economists from the Boston Fed in the summer of 2003—and they were already alarmed about the housing bubble and prices having risen too far above the ability of many people to pay for them, especially as their teaser rates rose and without any equity cushion to speak of.
That is ironic since the Boston Fed published a well publicized paper claiming there is systematic discrimination against minorities in the housing market. That helped set off the craze for lowering underwriting standards in an effort to boost home ownership rates.