Some reports on the state of the US homebuyer. "A growing number of homeowners in New Hampshire are being forced out of their homes by foreclosure. Foreclosure filings in the state jumped from 188 in February to 263 in March. In Strafford County, there were 19 foreclosures in January and February, compared to 40 during all of 2005."

"'There is an alarming trend occurring here,' Strafford County Registrar of Deeds Leo Lessard said. Lessard and others who watch housing trends say the increases probably are due to rising interest rates and high home prices."

"'Home prices were so high, people borrowed so much money that if there was a blip in the economy, foreclosures were inevitable,' Lessard said. ForeclosuresNH says 52 percent, or 98 of February’s foreclosure notices went to homeowners who purchased or refinanced their homes in the past two years."

"'Our analysis of January 2006 Massachusetts foreclosure filings confirms that 2006 is mirroring the dramatic pace set in 2005, with foreclosures running 39% higher than January 2004,' said Jeremy Shapiro. 'In fact, some areas in Massachusetts are seeing even higher increases.'"

"Foreclosures were filed on 1,075 Massachusetts properties in January 2006, while only 776 were filed in January 2004 and 919 in 2005."

"Most real estate experts agree the market is slowing, but they maintain there isn't a bubble in Southern California. But if you're one of those who stretched your resources or perhaps the truth to get into the market, your bubble may be about to burst."

"'We're running into more clients who are headed down that path right now,' said (mortgage broker) Mark Prather in Cerritos. 'The foreclosure rate is starting to grow.'"

"Foreclosure activity in California rose in the fourth quarter of 2005. Lenders sent almost 15,000 default notices to California homeowners between October and December, up 19 percent from the third quarter, according to DataQuick Information Systems. 'We had three clients just in the last two weeks who are facing sale dates and they are in difficult trouble,' Prather said. "Frankly, they overbought, and that is a big part of the problem.'"

"The average adjustable rate mortgage is now 6.03 percent, and Prather believes that rate is on its way to 7 percent. That means those with ARMs, adjustable-rate mortgages, may be doling out some extra cash."

"For example, the average loan amount in the Cerritos area most recently was for $475,000, Prather said. ARMs a year ago started at roughly 4.5 percent, putting the monthly mortgage due at $2,406. When it hits 7 percent, that payment will reach $3,160. That's another $754 each month."

"Mortgage rates have hit their highest level in nearly four years, and that has a direct impact on home affordability...and home prices. The average rate on a 30-year fixed mortgage stands at 6.37 percent, up from 5.58 percent last summer."

"'I think it's indisputable that demand in the housing market has declined in the past few months,' says (economist) Richard DeKayser. 'It's very clear that rising interest rates figure very large in that decline.' As rates rise, homebuyers who were already stretched need to demanding lower prices. 'Low rates had offset unaffordability in past years,' said DeKayser."