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The US Housing Market and the Subprime Mortgage Crisis (A)
![Case Details](images/details.png)
![Case Introduction 1](images/intro1.png)
![Case Introduction 2](images/intro 2.png)
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Excerpts
The US Mortgage Market in the Early 2000s
The Crisis
By mid-2004, house prices in the US had appreciated steeply.Sensing the formation of a ‘bubble', the Federal Reserve began raising interest rates gradually, so as to prevent a sharp downturn in the housing market which it was feared could lead to a recession just as the bursting of the dotcom bubble in 2000 had contributed to the subsequent recession of 2001-02. Between June 2004 and July 2006, interest rates were increased 17 times, from 1 percent to 5.25 percent (Refer Table I).........