What happened... !
Starting in 2000, mortgage originators in the US relaxed their lending standards and created large numbers of subprime first mortgages. !
This, combined with very low interest rates, increased the demand for real estate and prices rose. !
To continue to attract first time buyers and keep prices increasing they relaxed lending standards further !
Features of the market: 100% mortgages, ARMs, teaser rates, NINJAs, liar loans, non-recourse borrowing