Cause of US housing bubble peaked in 2005 -'06; Rising housing prices had encouraged borrowers to assume risky mortgages in assumption of that they would be able to refinance terms; Borrowers was unable to refinance because interest rates began to rise and housing prices started to drop 2006-'07;
Cause of US housing bubble peaked in 2005 -'06
Rising housing prices had encouraged borrowers to assume risky mortgages in assumption of that they would be able to refinance terms
Borrowers was unable to refinance because interest rates began to rise and housing prices started to drop 2006-'07
As easy initial terms, expired defaults and foreclosure activity increased
Causes : inability of homeowners to mortgage payments, bad monetary and housing policies, international trade imbalances, poor government regulation