Following the surge in homeownership in 2004, how did the resulting drop in home prices and new construction contribute to the 2008 financial meltdown?

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It caused lenders to tighten credit, reducing subprime mortgage defaults

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It led to more home re-sales, which temporarily improved market activity

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It lowered interest rates, leading to more borrowing and home purchases

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It increased financial risk as mortgage defaults rose and loans reset

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Following the surge in homeownership in 2004, how did the resulting drop in home...

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