Timeline of the 2000s United States housing bubble

Housing prices peaked in early 2005, began declining in 2006 (see also United States housing market correction).

1930s 1933-1939 The New Deal is a group of new laws created to fix problems in the Great Depression economy, including methods to increase home ownership for Americans . 1934 The National Housing Act of 1934, part of the New Deal, makes more affordable housing and home mortgages. It creates the Federal Housing Administration (FHA) (later United States Department of Housing and Urban Development, HUD) and the Federal Savings and Loan Insurance Corporation. 1938 Fannie Mae is founded by the government under the New Deal. It is a stockholder-owned corporation that purchases and securitizes mortgages in order to ensure that funds are consistently available to the institutions that lend money to home buyers.

1968–1991 1968: As part of the Housing and Urban Development Act of 1968, the Government mortgage-related agency, Federal National Mortgage Association (Fannie Mae) is converted from a federal government entity to a stand-alone government sponsored enterprise (GSE) which purchases and securitizes mortgages to facilitate liquidity in the primary mortgage market. The move takes the debt of Fannie Mae off of the books of the government. 1970 Federal Home Loan Mortgage Corporation (Freddie Mac) is chartered by an act of Congress, as a GSE, to buy mortgages on the secondary market, pool them, and sell them as mortgage-backed securities to investors on the open market. The average cost of a new home in 1970 is $26,600 ($167,817 in 2017 dollars). From 1960 to 1970, inflation rose from 1.4% to 6.5% (a 5.1% increase), while the consumer price index (CPI) rose from about 85 points in 1960 to about 120 points in 1970, but the median price of a house nearly doubled from $16,500 in 1960 to $26,600 in 1970. In 1970, the median price of a home was $22,100 to $25,700. 1974: Equal Credit Opportunity Act imposes heavy sanctions for financial institutions found guilty of discrimination on the basis of race, color, religion, national origin, sex, marital status, or age. 1975: In January 1975, the Median Home Price was $37,200, while the Average Home Price was $39,500. 1977: Community Reinvestment Act passed to encourage banks and savings and loan associations to offer credit to minority groups on lower incomes or owning small businesses et seq.).Text of Housing and Community Development Act of 1977—title Viii (Community Reinvestment) . Beforehand, the companies had been engaging in a practice known as redlining. July, 1978: Section 121 allowed for a $100,000 one-time exclusion in capital gain for sellers 55 years or older at the time of sale.1. Proposal for Amending I.R.C. §121 and §1034 U.S. House of Representatives 1980: In January 1980, the Median Home Price was $62,900, while the Average Home Price was $72,400. The Depository Institutions Deregulation and Monetary Control Act of 1980 granted all thrifts, including savings and loan associations, the power to make consumer and commercial loans and to issue transaction accounts, but with little regulatory oversight of competing banks; also exempted federally chartered savings banks, installment plan sellers and chartered loan companies from state usury limits.The Effect of Consumer Interest Rate Deregulation on Credit Card Volumes, Charge-Offs, and the Personal Bankruptcy Rate , Federal Deposit Insurance Corporation "Bank Trends" Newsletter, March, 1998. The cost of a new home in 1980 is $76,400 ($189,918 in 2007 dollars). 1981: The Section 121 exclusion, allowing for a one-time exclusion in capital gain for sellers 55 years or older at the time of sale, was increased from $100,000 to $125,000. 1981: Each Federal Reserve bank establishes a Community Affairs Office to ensure compliance with Community Reinvestment Act. 1985: In January 1985, the Median Home Price was $82,500, while the Average Home Price was $98,300. 1985–1991: Savings and Loan Crisis caused by rising interest rates and over development in the commercial real estate sector, and exacerbated by deregulation of savings and loan lending standards and a reduction in capital reserve requirements from 5% to 3%. 1986: The Tax Reform Act of 1986 eliminated the tax deduction for interest paid on credit cards, encouraging the use of home equity through refinancing, second mortgages and home equity lines of credit (HELOC) by consumers.Impact of 1986 Tax Reform Act on Homeowners Today HomeFinder.com, August 5, 2008 1986–1991: New homes constructed dropped from 1.8 to 1 million, the lowest rated since World War II. 1989: One-month drop in sales of previously owned homes of 12.6 percent.; Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) enacted which established the Resolution Trust Corporation (RTC), closing hundreds of insolvent thrifts and moved regulatory authority to the Office of Thrift Supervision (OTS); required federal agencies to issue Community Reinvestment Act ratings publicly. 1990: In January 1990, the Median Home Price was $125,000, while the Average Home Price was $151,700. The average cost of a new home in 1990 is $149,800 ($234,841 in 2007 dollars). 1991–1997: Flat Housing prices. 1991: US recession, new construction prices fall, but above inflationary growth allows them to return by 1997 in real terms.

1992 - 2000 1992: Federal Housing Enterprises Financial Safety and Soundness Act of 1992 required Fannie Mae and Freddie Mac to devote a percentage of their lending to support affordable housing increasing their pooling and selling of such loans as securities; Office of Federal Housing Enterprise Oversight (OFHEO) created to oversee them.Ben S. Bernanke, Chair of Federal Reserve System, The Community Reinvestment Act: Its Evolution and New Challenges, speech at the Community Affairs Research Conference, Washington, D.C., Federal Reserve System website, March 30, 2007. 1994: Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (IBBEA) repeals the interstate provisions of the Bank Holding Company Act of 1956 that regulated the actions of bank holding companies. 1995: January: The Median Home Price was $127,900, while the Average Home Price dropped to $147,400, down from $151,700 in January 1990. New Community Reinvestment Act regulations break down home-loan data by neighborhood, income, and race; encourage community groups to complain to banks and regulators by allowing community groups that marketed loans to collect a brokers fee;Sandra F. Braunstein, Director, Division of Consumer and Community Affairs, The Community Reinvestment Act, Testimony Before the Committee on Financial Services, U.S. House of Representatives, 13 February 2008. Fannie Mae allowed to receive affordable housing credit for buying subprime securities. 1997: Mortgage denial rate of 29 percent for conventional home purchase loans. July: The Taxpayer Relief Act of 1997 repealed the Section 121 exclusion and section 1034 rollover rules, and replaced them with a $500,000 married/$250,000 single exclusion of capital gains on the sale of a home, available once every two years.1. Proposal for Amending I.R.C. §121 and §1034 U.S. House of Representatives This encouraged people to buy more expensive first homes, as well as invest in second homes and investment properties. November: Fannie Mae helped First Union Capital Markets and Bear, Stearns & Co launch the first publicly available securitization of CRA loans, issuing $384.6 million of such securities. All carried a Fannie Mae guarantee as to timely interest and principal. 1998: September 23, 1998: New York Fed brings together consortium of investors to bail out Long-Term Capital Management. 1998: Inflation-adjusted home price appreciation exceeds 10%/year in most West Coast metropolitan areas. October: "Financial Services Modernization Act" killed in Senate because of no restrictions on Community Reinvestment Act-related community groups written into law.Stephen Labaton, Issue in Depth: Leading Up to the Decision on Banking Reform, Washington Post, October 23, 1999. 1999: July: President Clinton's Housing Urban Development (HUD) Secretary, Andrew Cuomo announces on July 29, 1999 - ACTION TO PROVIDE $2.4TRILLION IN MORTGAGES FOR AFFORDABLE HOUSING FOR 28.1 MILLION FAMILIES July: Countrywide Financial and FannieMae ink a Strategic agreement which will lead Countrywide to become the country's leading mortgage provider to poor minorities by the end of 2000. Countrywide, Fannie Ink Pact National Mortgage News and SourceMedia, Inc., July 9, 1999 September: Fannie Mae eases the credit requirements to encourage banks to extend home mortgages to individuals whose credit is not good enough to qualify for conventional loans.Steven A Holmes, Fannie Mae Eases Credit To Aid Mortgage Lending, New York Times, September 30, 1999. November: Gramm-Leach-Bliley Act "Financial Services Modernization Act" repeals Glass–Steagall Act, deregulates banking, insurance and securities into a financial services industry allow financial institutions to grow very large; limits Community Reinvestment Coverage of smaller banks and makes community groups report certain financial relationships with banks. 1995–2001: Dot-com bubble. March 10, 2000: NASDAQ Composite index peaked, Dot-com bubble collapse begins. 2000: January: The Median Home Price was $163,500, while the Average Home Price was $200,300. October: Oct. 2000 - HUD Sec Andrew Cuomo ANNOUNCES NEW REGULATIONS TO PROVIDE $2.4 TRILLION IN MORTGAGES FOR AFFORDABLE HOUSING FOR 28.1 MILLION FAMILIES October: Fannie Mae committed to purchase and securitize $2 billion of Community Investment Act-eligible loans.Fannie Mae Announces Pilot to Purchase $2 Billion of "MyCommunityMortgage" Loans; Pilot Lenders to Customize Affordable Products For Low- and Moderate-Income Borrowers , Corporate Responsibility News, October 30, 2000.Fannie Mae "MyCommunityMortgage" homepage . November: Fannie Mae announced that the Department of Housing and Urban Development (“HUD”) would soon require it to dedicate 50% of its business to low- and moderate-income families" and its goal was to finance over $500 billion in Community Investment Act-related business by 2010. December: Commodity Futures Modernization Act of 2000 defines interest rates, currency prices, and stock indexes as "excluded commodities," allowing trade of credit-default swaps by hedge funds, investment banks or insurance companies with minimal oversight,Barry L. Ritzholtz, A Memo Found in the Street, Barron's Magazine, September 29, 2008. and contributing to 2008 crisis in Bear Stearns, Lehman Brothers, and AIG.Adam Davidson (September 18, 2008) "How AIG Fell Apart", Reuters.Katie Benner (September 17, 2008) "AIG woes could swat swap markets" , Fortune (via CNNMoney.com).

2001 - 2006 1997–2005: Mortgage fraud increased by 1,411 percent. 2000–2003: Early 2000s recession (exact time varies by country). 2001–2005: United States housing bubble (part of the world housing bubble). 2001: US Federal Reserve lowers Federal funds rate eleven times, from 6.5% to 1.75%. 2002–2003: Mortgage denial rate of 14 percent for conventional home purchase loans, half of 1997. 2002: Annual home price appreciation of 10% or more in California, Florida, and most Northeastern states. June 17: President W. Bush sets goal of increasing minority home owners by at least 5.5 million by 2010 through tax credits, subsidies and a Fannie Mae commitment of $440 billion to establish NeighborWorks America with faith-based organizations.Press Release, President Calls for Expanding Opportunities to Home Ownership, Remarks by the President, June 17, 2000. 2003: Fannie Mae and Freddie Mac buy $81 billion in subprime securities. June: Federal Reserve Chair Alan Greenspan lowers federal reserve's key interest rate to 1%, the lowest in 45 years.J. Cox (2008), "Credit Crisis Timeline" University of Iowa Center for International Finance and Development E-Book