The main repository of middle-class wealth is the family home. The latest indexes show a decline in house prices for the eighth straight month. The chart below shows the most followed Case-Schiller Index and the CoreLogic report used by the Federal Reserve:
Of course this continued price declines means more mortgages are underwater (indebtedness exceeds market value)-- a whopping 28% on average:
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| [charts: Calculated Risk.com] |
The number of delinquent mortgages is falling but as this chart shows, foreclosures are still rising:
Of course this continued price declines means more mortgages are underwater (indebtedness exceeds market value)-- a whopping 28% on average: