No Good News on Housing in US

Around two million homes are either in foreclosure or for sale by bank owners of foreclosed homes. Moreover, there are many more potential foreclosures in the pipeline. It will take several years to work off this back load. In the meanwhile, prices will continue to fall and create more problems for banks. It is estimated that banks will be hit with $40 billion of writedowns. Its no wonder that they are holding on to record amounts of reserves and that the Fed continues to help by keeping mortgage rates low.