SubPrime mortgages caused the last recession (07-08 financial crisis). Much of it was a self-feeding cause and effect somewhat led by a 5 year rapidly increasing cost of Housing (especially new homes). 45% rate of change over 5 years; 227k up to 329k.
Interest rates at the time were considered fair, and decreased from 7.25% to 6.25% during the 5 year run up. ...