housing slump

An important article in today’s Wall Street Journal exposed how dire the national housing crisis has become.

Today, across the country, one in six homeowners is underwater in their mortgage. By this, The Wall Street Journal reports, nearly 16% of U.S. homeowners owe more on their mortgage then their home is worth.

In a county where the economy has been fueled during tough times by homeowners drawing upon their home equity to maintain their standard of living, the evaporation of equity is a major contributor to current economic problems.

According to the Journal:

Even in the midst of the worst housing slump in decades, some people are out there getting mortgages and buying homes.

But they're paying more for mortgages these days, and borrowers with shaky credit won't find it easy to get a loan.

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DIY chain Home Depot reports a 66% fall in three month profit, hit by the housing slump in the US.

Home Depot posted a 66% drop in quarterly profit Tuesday, as it paid to close stores and cut back on expansion plans amid the housing slump, although the results topped analysts' forecasts.

Freddie Mac, the second biggest provider of US mortgages, posts a loss as the housing slump persists.