It’s been well publicised lately that the housing market is on the brink of a crisis – in fact, the crisis has hit the US already. As mortgages become harder to come by and homeowners begin to struggle with rising interest rates and lower demand from buyers, the market is faced with a vicious circle in which prices keep falling, but there are not enough mortgages being offered to increase demand.
What happened? – a timeline
The problems can be traced back to the housing market in the US, in which people with poor credit history (known as ‘sub-prime’ borrowers) were allowed to take out mortgages – many of whom subsequently could not keep up with payments. Continue reading ‘Housing market: Past, Present & Future’ »