Microeconomics – Week #3 Assignment Housing Collapse Paper After reading Special Topic 5, The Great Recession of 2008–2009: Causes and Response, write a 2-page paper answering the following: Why did h

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Microeconomics – Week #3 Assignment

Housing Collapse Paper

After reading Special Topic 5, The Great Recession of 2008–2009: Causes and Response, write a 2-page paper answering the following:

Why did housing prices rise rapidly during 2002 – 2005?

Why did the mortgage default rate increase so sharply during 2006 and 2007 even before the 2008 – 2009 recession began?

What did the Community Reinvestment Act have to do with the housing bubble and collapse?

Cite your sources as needed.  Use APA formatting.

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