One reason the housing bubble occurred is because:

Question

Quizplus · Accepted Answer

All three statements are true and contributed to the formation and bursting of the housing bubble. People were investing in housing with the belief that prices would continue to rise, leading to a demand for more housing and driving prices even higher. As prices rose, it became easier for buyers to leverage more of a home's value and become more indebted. Finally, the mortgage sellers lost incentive to assess risk properly, leading to the accumulation of bad loans that eventually led to defaults and foreclosures.

One Reason the Housing Bubble Occurred Is Because