Encyclopedia of Investment Terminology

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United States Housing Bubble

The United States housing bubble was a bubble that involved great rises in house values in many areas of the United States during the mid-2000s. During this time values for homes were at an all time high and interest rates were exceptionally low. Lacking standards for mortgage groups allowing people to borrow money also caused this bubble to occur. As a result of this bubble housing values began to fall, foreclosures were occurring and many mortgage lending groups failed.

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