In the 2000s the housing market was in a very poor condition. Government intervention greatly helped the market get there. The incentives and lower bank standards aided in housing being unaffordable for many people. The qualifications for loans from banks were lowered allowing people who should never have been approved for loans receiving loans. This seems like a sweet thing to do, but in reality it not only hurts those individuals in the long run, it also hurts the market as a whole.
This is true. When the government tries to solve a problem, it often ends up creating another one.