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Foreclosures in the first quarter are hovering near 4,800, about 31 percent higher than a year ago.

That's not a good sign. Rising mortgage rates, aggressive refinancing in which owners pulled out all or most of their equity, and homes bought with no down payments are driving foreclosures,

More BAD signs. Too much debt.

He said many buyers of homes priced under $300,000 who locked in adjustable rate mortgages within the past few years are finding their monthly payments rising by $100 or $200.

That's why people are refinacing, drowning in debt. They can't pay the bills.

"When they go to sell the home, they're finding that their home is worth less than their mortgage," he said.

That's the killer. If this trend spreads, look out! The bubble is going to bust. Once interest shoots up, it's all over.

Then we will see how good for America all these illegals are when people look for that second job to keep the mortgage paid.

That's the killer. If this trend spreads, look out! The bubble is going to bust. Once interest shoots up, it's all over.
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That's not a bubble, chicken little, its supply and demand. People get what they wish for. When mortgage rates go up demand goes down. When demand goes down, prices come down. When you buy and expensive risky ARM to save a few bucks on a 30 year monthly payment, when fixed rate mortgages were the cheapest in history you're not thinking right. But if you didn't set yourself up for this scenario, you should bottom fish a little bit, find some flexible sellors and buy some dirt cheap housing.
When nobody can afford the mortgage money and rates come down in a few years, housing will be more of a value, and new people will be able to buy.