Question

During the Depression foreclosure rates skyrocketed. What was the main cause?

Answer 1

The correct answer is C) The interest rates on home loans ballooned and families could no longer afford payments.

During the Depression, foreclosure rates skyrocketed. The main cause was that interest rates on home loans ballooned and families could no longer afford payments.

After the United States stock market crash of October 1929, many economic problems started in the country. It was called the Great Depression. People lost their jobs, companies closed, and banks went into bankruptcy. The federal government did not do much to help the citizens and this was a period of hunger, depression, poverty, and sadness. People lost their homes too because interest rates on home loans increased so much and families could no longer afford payments.

Answer 2

Families without employment had little in savings to pay their mortgage.