What will happen to the housing market during the next recession? During the 2008 recession, the housing market crashed. In the years prior to what’s been called the Great Recession, subprime mortgages made buying a home accessible to almost anyone, including those who couldn’t afford to. As a result, there was a boom in homeownership and mortgages with little or no money down. As real estate prices declined dramatically, homeowners quickly found themselves “underwater” on their mortgages, meaning they owed more than the homes were worth. Struggling to keep up with payments they couldn’t afford amid massive layoffs and a stock market crash, millions of Americans began to default on their mortgages. It’s estimated that 9.3 million homeowners went through foreclosure or lost their homes. Some analysts argue that concerns over another housing market crash during the next recession are overblown. Laurie Goodman, founder and co-director of the Housing Finance Policy Center at Urban Institute, says it’s unlikely the housing market will crash again in an economic downturn. “Home prices aren’t expected to drop any time soon,” says Goodman. “In the past four recessions, they actually only dropped during one of them.” Greg McBride, chief financial analyst at Bankrate, notes that “anything goes” lending practices were a big part of why the last recession crushed the housing market. Today, there are stricter regulations in place under the Dodd-Frank Act to make sure this doesn’t happen again. Full Article: https://www.bankrate.com/mo…/buying-a-home-before-recession/