The fallout forced Congress and federal regulators to make significant adjustments that have fundamentally changed how mortgage lending is regulated. Loose mortgage lending practices ultimately brought down some of the nation’s largest banks and mortgage companies. With the robust market activity we’ve seen lately, could there be a market crash in the near future? The short answer is “not likely.” Today’s market book cannot be sustained completely, but a crash as serious as the one from 15 years ago is unlikely because of a few important factors.įactor No. Even today, several real estate markets have not fully recovered. Housing values plunged 30% or more, homeowners lost a collective $7 trillion and it took nearly a decade for most markets to recover. When the housing bubble burst, roughly nine million families lost their homes to foreclosure or short sale between 20. Fueled by low interest rates, loose mortgage-lending standards and the nation’s unshakeable faith in homeownership, home values rose at record rates year-after-year.
The unforeseen housing market crash 15 years ago ignited a worldwide recession. With the real estate market experiencing surging prices, scant inventories and a backlog of new home construction, many consumers are wondering if what’s gone up must come back down-in other words, are we headed for another housing market crash? Let’s take a closer look.
0 kommentar(er)
