House Price Declines May Accelerate This Summer

Here's Dean Baker's thinking on it:

In the weeks since the end of the extended first time homebuyers tax credit purchase mortgage applications have fallen sharply. They dropped another 4.1 percent last week reaching their lowest level since April of 1997. This deserved some attention since it implies that home sales are falling sharply. This suggests that the price declines seen in recent months are likely to accelerate in the summer.