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December 15, 2008 (LPAC)--During the first half of 2008, 46% of 90-day delinquencies on conventional, conforming loans were the result of loss of income, according to Freddie Mac. This compares with 36% in 2006. And this is only the beginning.

USA Today reports that unemployment today is the cause of almost half of all U.S. foreclosures. Lawfully, the National Coalition for the Homeless reports that homelessness is also rising quickly.

Rick Sharga of RealtyTrac warns "it's not going to be pretty. You're going to see whole different regions of the country suffer."

Add to this the report issued by Zillow.com today, showing that U.S. home values plunged by 9.7% in the third quarter compared to a year ago, and 12.8% compared to the 2006 market peak. One in seven homeowners, or 14.3%, has negative equity. Zillow calculates that by the end of this year, American homeowners will collectively lose more than $2 trillion in home value.

While most of the subprime loans that will fail have already done so, according to Zillow, they say there are many more "toxic" mortgages, such as option ARMs, whose default rates haven't yet peaked. Not to mention the unemployment issue.

You'd almost think we're in a depression.