Paulson thinks that the housing correction is "at or near the bottom". That is a sure sign that the housing market has still got a long way to go before things stabilise.

WASHINGTON (Thomson Financial) - The US housing market correction is 'at or near the bottom' but the fallout from problems in the subprime mortgage market will likely continue, Treasury Secretary Henry Paulson said. Paulson said losses related to foreclosures in the subprime market were to be expected in light of the 'major' housing correction the US has gone through. At the same time, he believes the risk in this area is 'largely contained,' and poses no threat to the overall economy.