Housing Prices Have Not Hit Bottom

The media may be promoting otherwise but the housing market still has more depreciation coming up.

The media would like to have you think otherwise by promoting a stronger more vibrant economy but the truth is:

-Nearly 50% of Americans are under water on their mortgages
(They owe more on their mortgage than the house is actually worth)
-Nearly 20% of homes are either in foreclosure or severely behind on their mortgage payments
-It started with Subprime loans but now 3% of Prime Loans (Strong Credit) are 60+ days behind on their mortgage payments
-Option Arm Loans (Pick A Payment, Negative Amortization Loans) have still yet to re-amortize from their peak 2006-2007 originations. At the 2011 some 30 Billion Volume in option arms will reset, that is larger than the 25 Billion Volume of subprime resets that peaked in April of 2009.

Not to mention that mortgage interest rates are at 5-6% still, historically much lower than they have been in the past. Those rediculously low rates have prolonged the bottom of the housing market because you cant keep rates that low forever. Add to that, the insane inflation we should be experiencing shortly from the record deficits, and it doesn’t look pretty. So the media and the government may be saying we've bottomed and are heading to greener pastures but the statistics show a strong case against their half truths. Ask yourself this, do you or your employer feel better today about the economy than you did 6 months ago.