Housing Bubble

Housing Bubble: The U.S. economy is enjoying an amazing boom in real estate which has some economists predicting a burst of the housing bubble soon. Realtor.com data show that…The housing bubble was a period of time where home prices were inflated to an unsustainable level. The causes of the housing bubble are rooted in the deregulation of mortgage lending standards. The effects of the housing bubble are that it led to a recession in 2008. Solutions to this problem include increasing interest rates, raising taxes on capital gains, and limiting homeownership subsidies.