The housing market in the United States

This paper focuses on the housing market in the United States. In 2007 the financial system in the United States signals problems with unknown consequences for the world economy. As we know the housing market is like any other market not a stable one as the past have shown. Though technological progress the financial system developed and financial products like mortgages became more complicated and more in strangled with the current financial system. This means that influences in the financial market would affect the housing market as well. As most consumers cannot buy housing at once, they need to acquire a mortgage. Buying housing is not simple, as there are different actors with their own interest, as the buyer, seller and banker that lead to many requirements and conditions. Last decade the requirements to buy housing were low as the conditions were optimal, which led to booming housing demand and prices. Not taking into account the future risk of negative conditions and tough requirements has consequences for the economy and the rest of the world. This paper analyzes the unawareness and downside of requirements and conditions to the housing market and its implications.