Which of the following contributed to the soaring housing prices during 2002-2005?
A) The Fed's low-interest rate policy.
B) Regulations that reduced the required down payment and other lending standards for home mortgages.
C) The increased leverage lending by Fannie Mae, Freddie Mac, and large investment banks.
D) All of the above.

Question

Quizplus · Accepted Answer

All of the factors listed contributed to the soaring housing prices during 2002-2005. The Fed's low-interest rate policy made borrowing cheaper, relaxed lending standards increased access to mortgages, and increased leverage by financial institutions fueled more investment in housing.

Which of the Following Contributed to the Soaring Housing Prices