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Financial crisis of 2007–2008

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Growth of the housing bubble: update sales price graph to year 2016 (from 2011)
===Growth of the housing bubble===
{{Main|United States housing bubble}}
[[File:Median and Average Sales Prices of New Homes Sold in United States 1963-20082016 annual.pngsvg|thumb|290px300px|A graph showing the median and average sales prices of new homes sold in the United States between 1963 and 20082016 (not adjusted for inflation)<ref name="USCensus-new-housing"/>]]
Between 1998 and 2006, the price of the typical American house increased by 124%.<ref>{{cite news|title=CSI: credit crunch|work=[[The Economist]]|url=http://www.economist.com/specialreports/displaystory.cfm?story_id=9972489|accessdate=May 19, 2008|date=October 18, 2007}}</ref> During the two decades ending in 2001, the national median home price ranged from 2.9 to 3.1 times median household income. This ratio rose to 4.0 in 2004, and 4.6 in 2006.<ref name="businessweek1">{{cite web|url=http://www.businessweek.com/investor/content/oct2008/pi20081017_950382.htm?chan=top+news_top+news+index+-+temp_top+story|title=The Financial Crisis Blame Game – BusinessWeek|work=BusinessWeek|author1=Ben Steverman|author2=David Bogoslaw|date=October 18, 2008<!--, 12:01&nbsp;am EST -->|accessdate=October 24, 2008}}</ref> This [[housing bubble]] resulted in many homeowners refinancing their homes at lower interest rates, or financing consumer spending by taking out [[second mortgage]]s secured by the price appreciation.