Economics
Grantham Week 3 Housing Collapse & Increase in Housing Prices Discussion Questions

Grantham University

Question Description

I’m stuck on a Economics question and need an explanation.

Housing Collapse Paper

After reading Special Topic 5, write a 2-page paper answering the following:

Why did housing prices rise rapidly during 2002 - 2005?

Why did the mortgage default rate increase so sharply during 2006 and 2007 even before the 2008 - 2009 recession began?

What did the Community Reinvestment Act have to do with the housing bubble and collapse?

Cite your sources as needed. Use APA formatting.

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Final Answer

Hello, Please find the attached paper. Please let me know if you have any question.Thanks and Goodbye.

Running head: HOUSING COLLAPSE PAPER

Name
Assignment
Course
Instructor
Date

1

HOUSING COLLAPSE PAPER

2
Housing Collapse Paper

Increase in Housing Prices
Several factors played a key role to increase the housing prices between 2002 – 2005.
The first major reason for this increase was the migration of numerous people, legally to
illegally, to the United States to have a better life and more opportunities to make their living
standards better. As many people migrated to the United States, it was obvious that they also
needed a house for living there. This increased the prices of houses due to an increase in demand
for houses. Along with this, there was on more key factor for this increase. The easiness in
mortgage credits by banks in that period motivated many consumers for h...

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