1. Over what period did the U.S. see the largest decrease in the number of households owning their own homes?
2. The shaded areas represent recessionary periods when the U.S. economy contracted. What typically happens to the homeownership rates during these periods?
3. When do you think home prices peaked? Why?
4. 2008 was a significant year for the housing market and marked the beginning of the "Great Recession". For each of the actions below, indicate which period you think they apply to: the decade BEFORE 2008 or the decade AFTER 2008.
a. Banks making home loans with no down payments required:
b. Banks making home loans to only applicants with high FICO scores:
c. Homeowners losing homes to foreclosures:
d. New home construction down significantly:
5. Based on what you see in the graph above, predict what will occur to homeownership over the next five years.
(Please answer all questions carefully and if full sentences)
- Thank you