While many mortgage bankers wish that the collapse in this sector was over, it appears that we will have some more pain to endure. Many are now projecting that the mortgage and real estate sector won't show signs of recovery until possibly this time next year and some are calling for a recovery as late as 2009.

The housing recession is now listed as the worst in over 16 years. Foreclosures are at a record pace which is adding even more inventory to an already over supplied market which is driving housing prices down across the nation. Once thriving subdivisions are now "shells" of what they once were due to the rise in foreclosures. In the Atlanta area, almost 50% of one subdivision was foreclosed last week.

Falling home prices are now placing pressures on local and state governments as property taxes are falling with the fall in housing prices. Many local governments derive most of their revenue from property taxes to support their initiatives. Some cities across the nation maybe looking at a reduction of up to 20% in their tax revenue!

Is there any good news? There is no question we are in a "buyers market". Rates are now below 6% and prices have dropped in many areas making many homes even more affordable. The drop in prices will find a bottom and I believe we are approaching that level now.