2008 Housing Bubble
About 2008 Housing Bubble
The US housing bubble from 2000 to 2006 saw home prices rise 85 percent nationally. In some markets like Las Vegas, Miami, and Phoenix, prices tripled. The bubble was fueled by subprime mortgages, low interest rates, lax regulation, and securitization. Mortgages were bundled into mortgage backed securities rated AAA by rating agencies. When adjustable rate mortgages reset, defaults surged. Home prices fell 30 percent nationally and up to 60 percent in bubble markets. Over 10 million Americans lost homes to foreclosure. The bubble was the worst US real estate crash since the Great Depression. Recovery took a decade in most markets, longer in severely affected areas.
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