How can the early 2000s real estate market be characterized?

The early 2000s real estate market is characterized by low interest rates and high property values due to several factors. The Federal Reserve lowered interest rates in the early 2000s following the burst of the dot-com bubble and the economic slowdown that followed. This reduction in interest rates made borrowing more affordable, which encouraged more people to obtain mortgages and invest in real estate.

As a result of increased demand for housing, property values began to rise significantly during this period. Easy access to credit and the prevalence of adjustable-rate mortgages further fueled the housing boom, leading to higher prices in many markets as buyers sought to take advantage of favorable lending conditions. This combination of low borrowing costs and heightened demand ultimately led to a surge in property values.

The other options do not accurately reflect the conditions of the early 2000s real estate market. High interest rates would deter buyers and depress property values, while stable interest rates or variable rates with consistent values would not capture the dynamic changes observed during this period of significant growth in both demand and prices.