U.S. home prices fall another 6.9 percent in April, from levels seen one year ago.   The catalyst seems to be record foreclosures, rising rates and the highest level of unemployment in the past 26 years.

More troubling news…home buyers and people looking to refinance have retreated to the sidelines, as mortgage rates creep back up to nearly 6 percent for a 30 year fixed rate loan.

Although the Federal Reserve is working to keep rates low, concerns about rapidly growing government debt, inflation, and the likelihood of a further decline in real estate values continue to push rates higher.

Tax incentives and other efforts to stimulate housing sales have not been able to keep up with the number of people losing their homes.   In May, filings surpassed 300,000 for the third straight month.  Foreclosure filings are predicted to reach 1.8 million in the first half of 2009, alone. 

To read about predictions for Real Estate Prices Going Forward, CLICK HERE.

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