I would not say that we through to the Housing Bubble, but due to lender program and risk-taker buyer put the housing market on the roof. Lately everyone has a concern on deliquencies in housing due to problem in subprime mortgage. Subprime mortgage means lender give loan to the people who has less credit scores, who either miss the payment or did late payment. They give loan to this people with few documents. This kind of loan reaches 1.3Trillion, 13% of them is already in trouble. As you can imagine, if this loans are bad, it will hit lender and financial market big time resulting in more foreclosures and cool down in housing market. Atleast 20 lenders are already in trouble. The subprime loan is huge now a day, just only in 2006, 20% of total new loan is subprime mortgage.
Bloomberg News
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