Very salient posts by davel and patient followed by a great answer by LA renter.

“Besides once home prices begin falling such as they are now very few will be willing to take out a mortgage without the confidence that home price appreciation is certain.”

Just on this blog you can absolutely see the panic went up several notches in the last couple of weeks.Many people are very concerned about the ability to maintain financial security going forward. Who wants to dump a good portion what ever assets they have into a house and assume a mortgage when so many people are actually passing the “R” word and even the “D” word around and depreciation is a given. I agree with LA renter, buyers are the only ones who can muster much of a ” bail- out” and they have obviously said “hell no!”.