I think that private sector and big banks caused the housing bubble and that it was not the fault of the federal government. I think that banks mishandled interest rates and locked people into home loans that there was no way they could ever pay back, and that is not the fault of the Feds.
The housing bubble was caused by lenders who would give anybody with a pulse a mortgage. Also, the lean holders would do adjustable rate mortgages where the payment could go up or down based on federal reserve. Too many people were stuck with house payments they could not afford. The lenders would like to blame the government for there mistake.
Although low interest rates influenced by the Federal Reserve may have contributed some to the housing bubble, it was ultimately unsustainable supply of and demand for houses and mortgages that created the housing bubble. This was largely caused by the rise of subprime mortgages which allowed many more people to have mortgages to buy houses than should have.
While it is the opinion of many, both inside and outside of federal government, that the polices of the Federal Reserve (Fed) were to blame for the US housing bubble, an objective review of the evidence suggests that it was the lack of effective regulatory oversight for the mortgage banking industry that caused the housing bubble.
No federal governmental agency was tasked with oversight of mortgage lending practices, resulting in leaders making loans that had no possibility of being repaid. These loans were then allowed to be turned into securities sold on Wall Street.