Growth of Subprime Loans

The growth of subprime loans has been huge. What is a sub prime loans? Simply put "A loan that is offered at a rate above prime to individuals who do not qualify for prime rate loans. (Investopedia.Com)"

No documention (aka 'liar loans') and low documentation loans are also increasing as a percentage of all loans. This from HoweStreet.com :

The share of “jumbo” mortgages (mortgages for more than $359,650) issued without full documentation increased from 27% in 2001 to 51% in 2004.

One of the major causes for the housing bubble is the ongoing credit bubble. If, and when the credit bubble pops the housing bubble will surely pop shortly thereafter. ( Even if the credit bubble does not pop, the housing bubble will still eventually pop ) The creative irresponsible lenders, are almost out of 'pony tricks' to keep this credit bubble growing. Since the lender are almost out of 'pony tricks', the housing bubble is on its last legs.