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Credit Contraction and Declining Asset Valuation. What caused the credit crisis – which some call the sub-prime mortgage crisis?. Low interest rates for extended periods of time often lead us to conclude property prices will forever rise. Prices of New Single-Family Homes and Mortgage Rates.
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What caused the credit crisis – which some call thesub-prime mortgage crisis?
Low interest rates for extended periods of time often lead us to conclude property prices will forever rise.
“House price appreciation”- as coined by Warren Buffett - would cure the fact that borrowers didn’t have adequate income nor adequate equity in their homes.