Mortgage Crisis Poses National Housing Recession Threat

The U.S. mortgage melt down has producedstate's markets remain strong enough to be
America's real estate crisis with falling home pricesconsidered as overall appreciating by Housing
and record foreclosures, and it now threatens toPredictor analysts.
produce the Nation's worst economic disaster inHousing Predictor forecasts more than 250 local
history, according to a new report by Housinghousing markets futures in all 50 states and provides
Predictor.thorough analysis on the fall out from the mortgage
The real estate markets rocked for years withcrisis.
double digit appreciation or near double digitCalifornia, Florida, Michigan and Nevada are the most
appreciation in many areas of the country only toseverely impacted states. But the majority of states
come slamming down. Some markets have droppednow have falling housing prices in most markets.
as much as 40% from their record highs.Adding to the problem is a new estimate that now
The crisis has worsened amid souring buyerpaints a disturbing picture of just how massive the
sentiment, fearing prices will fall further. More thangrowing crisis has become. An estimated more than 5
half of the nation's housing markets regularlymillion adjustable rate mortgages are set to be
monitored by Housing Predictor have sales levels thatreadjusted before the end of 2009, and many
are the lowest in more than two decades.homeowners are expected to be unable to make the
Prices of many homes are falling at faster rates thanhigher payments required to keep their homes.
at the peak of the U.S. Savings and Loan FraudThe problem started in the subprime mortgage
scandal in the early 1990's.markets and has now spread into conventional
The real estate crisis is beginning to broaden, movingmortgages, most of which were new creative
into markets that have not yet felt the impact. Butfinancing provided by mortgage companies in order
there are exceptions to the slow down, which areto make the loans or required little qualification to
included in the Housing Predictor forecasts. Tenobtain.