Znaczący boom na rynku mieszkaniowym

The United States entered a mild recession in 2001 after the dot-com bubble burst and the September 11 attacks.

To support the struggling economy, the Federal Reserve cut the target federal funds rate. The Fed even reduced it to the lowest in decades, and it stayed there for some time.

The low target federal funds rate led to low borrowing costs throughout the economy.

When banks faced lower short-term borrowing costs from the Federal Reserve, they were able to offer lower interest rates on a range of longer-term loan products, including mortgages. So, mortgage rates also dropped, making it less expensive to get a mortgage and buy a home. This allowed more families to afford mortgages with manageable monthly payments.

As more households could afford mortgages, demand for housing increased, leading to a rapid rise in house prices.

Even people with low credit scores or poor repayment history gained access to loans.

These loans were known as subprime mortgages. Together, low interest rates and easier mortgage access were among the factors that helped fuel a major housing boom.