[Perdogg]

Also, the tax credit ended.

[McGavin999]

The economy will recover when government stops forcing the banks to grant credit to poor risks. If you don't have a down payment (unless you are a vet) you shouldn't even be considered for a home loan.

The things that should be required to purchase a house in America should be:

Down payment
A job with a decent employment history
Proof of citizenship or a cosigner who is a citizen abd financially responsible (capable of picking up the payments in the case of default)

If they don't do these things there will be no recovery. It's going to be hard, but we'll get there.