U.S. Housing Market in 2008

The U.S. housing market broke in 2008. Lehman Brothers failed in September; new-home sales collapsed to 485,000 (down 62% from 2005); and existing sales fell to 4.13M, beginning the steepest housing recession since the 1930s.

By year-end, foreclosure starts had reached 2.3M — three times the 2006 rate. The first wave of subprime resets had cascaded through the mortgage-backed securities system; AIG, Fannie Mae, and Freddie Mac were placed in conservatorship. The 30-year fixed dropped to 6.03% by year-end and would fall further in 2009 as the Fed initiated zero-interest-rate policy. Median existing-home prices fell from $217,900 in 2007 to $196,600 in 2008 — and would fall further to $166,200 by 2011 before the recovery began.

See also

• The 2008 subprime housing collapse
• The full 1963–2024 data table
• 30-year fixed mortgage rate history
• Median home price history