real estate

What is a housing bubble?

 

What is a housing bubble?

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

A housing bubble is similar to a soap bubble that forms and inflates -- and eventually pops. In a housing bubble, home prices are rapidly pumped up by both demand for homes and speculation. When the bubble bursts, prices go into a steep decline.

A housing bubble is a rather rare animal. More typically, a real estate boom ends when home prices flatten out for a few years.

To find a great rate on a home loan, visit the Mortgages section at Bankrate.com.

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