Final answer:
The starting point for the limits on most single-family homes in 2015 was influenced by the effects of the housing bubble burst, leading to tighter credit and loans being less accessible for homebuyers.
Step-by-step explanation:
In 2015, the starting point for the limits on most single-family homes was rooted in the aftermath of the housing bubble burst that began in 2007. These limits refer to the maximum amount of mortgage loan that could be acquired by homebuyers from lenders.
The impact on homebuyers was significant. With the decline in home prices, those who purchased their homes at the peak of the housing bubble found themselves in a position where their homes were worth less than the mortgage they owed. This negative equity situation led to increased foreclosures and bankruptcies, making it more difficult for new buyers to get credit as banks became more cautious.
The housing market, after peaking in 2005 with 107,000 new single-family home sales, suffered a dramatic decline that continued through 2011. The downturn in the economy and the resulting tightening of credit acted to reduce the number of potential homebuyers and made it harder to secure financing, thereby putting downward pressure on home prices and sales.