Nearly 1 in 6 US homeowers owe more than homes are worst

The relentless slide in home prices has left nearly one in six U.S. homeowners owing more on a mortgage than the home is worth, raising the possibility of a rise in defaults -- the very misfortune that touched off the credit crisis last year. The result of homeowners being "under water" is more pressure on an economy that is already in a downturn. No longer having equity in their homes makes people feel less rich and thus less inclined to shop at the mall.

Record 16 Percent Drop in July Home Prices

July home prices plunge 16.3% in 12 months, according to the Standard & Poor's/Case- Shiller 20-city housing index.

New home sales drop to lowest in 12 yrs

New homes are for sale at the Promenade Islands of Doral development in Doral, Fla. Friday, Dec. 28, 2007. Sales of new homes plunged last month to their lowest level in more than 12 years. Sales of new homes plunged last month to their lowest level in more than 12 years, a grim testament to the problems plaguing the housing sector. (AP Photo/Lynne Sladky)

"The slump worsened even more than most analysts expected, heightening fears that the country might be thrust into a recession."

House prices seen falling 30 pct

"Housing markets from Punta Gorda, Florida, to Stockton, California, will crash and suffer price drops of more than 30 percent before the housing crisis is over, a report from Moody's Economy.com said on Thursday."

S&P: 3Q Home Prices Fall by 4.5 Percent

"U.S. home prices fell 4.5 percent in the third quarter from a year earlier, the sharpest drop since Standard & Poor's began its nationwide housing index in 1987 and another sign that the housing slump is far from over, the research group said Tuesday."