The housing markets continue to decline by more measures now, with a record number of homes entering foreclosure. Meanwhile, the deterioration in household financing is likely to continue throughout the year as housing prices continue to fall. In fact, the market value of a home minus the size of a mortgage dropped to 47.9% in the final three months of 2007, which illustrates the fact that mortgage debt is rising faster than home prices. Finally, delinquencies hit 5.82% which is up a quarter percentage point from the pervious quarter and the highest since 1985.

From the Wall Street Journal:
Two crucial barometers of the nation's housing market have worsened markedly in recent months, ratcheting up pressure on policy makers in Washington for action to stem the growing housing crisis and its widening impact on the nation's financial system. Among the latest trouble signals, the number of American homes entering foreclosure rose to the highest level on record in the fourth quarter of 2007. Meanwhile, homeowners' share of the equity in their homes fell to a post-World War II low.