An article on the Bloomberg website, one of a few that I check daily, had some interesting information regarding the trends nationally in regards to foreclosures.  The article shows facts that foreclosures are the highest they have been in nearly 30 years.  

Quick Points of Interest

• Prime ARM's accounted for 23% of new foreclosures (price declines starting to effect even the most savvy of borrowers)
• Sub-Prime ARM's accounted for 36% of new foreclosures
• Foreclosures are up to 4.33% from 1.29% a year ago.
• 75% of U.S. Banks surveyed indicated increased tightening of credit for even "prime" borrowers.

Prices could still decline further for homes if you watch this video...Shiller...which means pressure will mount as foreclosures continue to increase. (See last blog entry as well)

In an attempt to "always save the best for last"...Rates are BETTER!!!!    In a week where it appeared rates would go up and make the situation even more strained, the opposite happened.  Pressure on rates eased and they decreased for the longer term fixed loans.  As you will see, there is no real change to the ARM products but the long-term fixed rates are lower by about a quarter of a point this week.  Not sure how long this "trend" will continue, any buyers on the fence tell them to move now and reap the benefit for years to come.