real estate

What is a bubble?

 

What is a bubble?

The Bankrate.com financial term of the day is: "Bubble"

Bubble, bubble, can be trouble. A real estate or housing bubble is a rapid rise in home prices often fueled by speculation. When bubbles eventually burst, prices go into a steep decline.

In a housing bubble, prices get pumped up with hot air, only to deflate once demand cools.

To shop for the perfect home loan, visit the Mortgage section at Bankrate.com.
 

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