The US housing market is sliding into the abyss. In May, home foreclosures rocketed 90 percent compared to a year earlier. Default notices, auction sale notices and bank repossessions totaled 176,137. Furthermore, foreclosures were up 19 percent from April, suggesting that the foreclosure rate is accelerating.

Lets summarise; foreclosures up, interest rates up, inventory up, sales down, and prices tumbling. Can things get worse? Yes, they can get much worse.