Why do you think banks expanded their subprime lending so much in the mid 2000s?

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25-08-2020
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Why do you think banks expanded their subprime lending so much in the mid 2000s?

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Valeriaavendana53 Valeriaavendana53 · Answer 1 · 2020-08-25T00:56:04+02:00

Valeriaavendana53 Valeriaavendana53

25-08-2020

In the early to mid 2000s, interest rates on house payments were actually quite low. This sudden increase in subprime mortgages was due in part to the Federal Reserve’s decision to significantly lower the Federal funds rate to spur growth.

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