This insulation spurred investors to make funds available to Fannies and Freddie that otherwise would have been Invested in other securities or more productive endeavors, thereby fueling he housing boom. Are house where we live did go up in value and I noticed in 2005 there were a many different reality companies and mortgage brokers making calls to asking about refinancing. We even after we did refinance our home we still got calls from different companies saying you can still refinance and take money out for improvements to your home or take a vacation.

This was not the normal practice what all these lenders and banks should be doing. We did not take the advice of any of those companies because it just sounded too good of a deal and could turn it to a big disaster and to me this as just lots of trouble and eventually home owners would be in trouble financially and run the risk of losing the persons home, since they would not be able to afford the mortgage. But this was the risk these banks and lenders did. Then in 2009 our home then drops back down in value to the original value of the house when we bought it back in 1993.

All the cheap credit and risky lending has put San Diego home owners at risk of losing their homes. Do to fact that most refinanced their homes and either took out money on their mortgage or did home improvements to upgrade the home. This put many people in jeopardy with the mortgage. The supreme mortgage was the main reasons that led the housing market bubble to fall and cause over most homes in San Diego to decline in value or go to all time low in the value of a home in San Diego area.

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And when the economy crashed there were many people losing their jobs with then lead to many foreclosures in the San Diego area since many people could not to afford to pay the mortgage lot of them just walked away from their homes since they owed more on the house than what it was worth. Many people came to the conclusion that it was cheaper to rent than to pay the mortgage which many owed two to three times what heir home was worth. The foreclosure rate in the San Diego Area is another contributing factor to the falling prices of houses.

Since people were just leaving there homes this made neighborhoods houses in areas to fall even lower than what it would be if they had not foreclosed. Even thought the government came out with programs to try and keep home owners in their homes most did not qualify for the programs and some banks did participate in the programs that was to help them out to try and stop the foreclosure rate, but it did not help like the government has planned. So the foreclose rate just kept climbing in San Diego. In conclusion believe the housing market was not a contributing factor in which the economy eventually crashed.

Even though Fannies Mae and Freddie Mac made some bad and risky loans most of this was a cause of the government who loosen the restrictions on mortgage loans and wanting home owners to refinance and take money Out on their homes. This put homeowners in jeopardy of losing their homes. The supreme mortgage was the main cause of the housing crash. Also the stock market crash do to some risky investments which were made was the big cause of the falling out of all of this was economy. And the big companies like GIG, GM, Chrysler and Goldman and Sac were major contributors to the fall of the economy.

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