Federal report: Home flipping drove housing bubble | TahoeDailyTribune.com
YOUR AD HERE »

Federal report: Home flipping drove housing bubble

LAS VEGAS (AP) – The Federal Reserve Bank of New York says real estate investors drove the housing bubble that led to record foreclosures in Nevada, California, Arizona, Florida and other states.

The report released last week says the financial crisis was amplified by the rise and fall of housing prices during the last decade.

The report says investors who used mortgage credits to purchase multiple residential properties helped inflate home prices. According to the report, more than a third of all U.S. home mortgages granted in 2006 went to people who already owned at least one house.

Those buyers then defaulted in large numbers after home values began to drop.

The report notes that in Arizona, California, Florida and Nevada, investors made up nearly half of all mortgage-backed purchases.


Support Local Journalism

Support Local Journalism

Readers around the Lake Tahoe Basin and beyond make the Tahoe Tribune's work possible. Your financial contribution supports our efforts to deliver quality, locally relevant journalism.

Now more than ever, your support is critical to help us keep our community informed about the evolving coronavirus pandemic and the impact it is having locally. Every contribution, however large or small, will make a difference.

Your donation will help us continue to cover COVID-19 and our other vital local news.

For tax deductible donations, click here.

Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.

User Legend: iconModerator iconTrusted User