The median price of a new home in April dropped 0.9 percent from a year ago to $236,100. ... If the home owner wants to sell within 18 months after buying, the ...
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High-interest-rate loan for people with poor credit.
By definition, these borrowers are higher risk because they have yet to establish “good” credit.
There is a high risk for both lender and borrower.
Artificially inflated prices that eventually drastically drop.
The housing bubble burst, making it very difficult to refinance.
In the 1980s, the Savings & Loan market experienced similar problems.
It is believed to be the cause of a recession in the early 1990s.
“It’s not the government’s job to bail out speculators or those who made the decision to buy a home they knew they could never afford.” – President George W. Bush
He discussed a plan to bail out citizens, especially those with good credit.
It’s a misconception that just the poor are directly affected by the subprime market.
There are those who believe some lenders are inherently racist.
Single homes, new homes, locations.
Marion Gardner’s story.
Less consumer spending
Weaker stock market/wall street
- Home Depot
Higher cost of goods
Less purchasing power
Less Demand for $
Effects were seen in: