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May 8, 1991
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Housing Market Crisis
In 2006, house prices began a severe slide that resulted in a significant loss of households' wealth and triggered a wave of defaults on mortgages, which contributed to the financial crisis and recession that began in 2007. Since the end of 2011, both house prices and new construction have increased, but they remain well below their prerecession peaks. CBO has analyzed policies designed to alleviate problems in the housing and mortgage markets.
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