(1 point)
• The value of homes remained generally higher than the mortgage, so foreclosures decreased.
• Many people with subprime mortgages could not make their payments, so foreclosures increased.
• Banks offered more subprime mortgages to avoid further foreclosures.
• The Federal Reserve lowered interest rates to avoid further foreclosures.
1 answer
The correct relationship is:
• Many people with subprime mortgages could not make their payments, so foreclosures increased.
As home prices fell, borrowers with subprime mortgages often found themselves owing more on their loans than their homes were worth, leading to an increase in defaults and foreclosures.
