I heard the market is experiencing one of the worst dowfalls in years. That homeowners are not able to meet the expense of their houses anymore.
I know that happened because lenders gave out money to less than qualified borrowers.

But how is that somebody buys a house today and agrees to pay X amount of money and now can’t meet the expense of it? Isn’t it a fixed interest rate?

And also how is that this can affect the whole market or the US economy ?