What Was the Primary Cause of Home Prices Dropping in 2008?

The primary cause of the drop in house prices in 2008 was the inability of many homeowners to pay their periodic mortgage payments. These payments had become higher over time due to adjustable interest rates. Another primary cause of the mortgage crisis was the high number of lenders eager to grant loans to prospective homeowners despite these homeowners' poor credit history and the unlikelihood that these homeowners would be able to repay the mortgage.