About half of U.S. mortgages seen underwater by 2011

Reuters reports:

The percentage of U.S. homeowners that owe more than their house is worth will nearly double to 48 percent in 2011 from 26 percent at the end of March as home prices continue to fall, Deutsche Bank said on Wednesday.

Home price declines will have their biggest impact on "conforming" loans that meet underwriting guidelines of Fannie Mae and Freddie Mac, the bank said in a report. Conforming loans make up the bulk of mortgages, and are typically less risky because of stringent requirements.

Of conforming loans, 41 percent will be "underwater" by the first quarter of 2011, up from 16 percent at the end of the first quarter 2009, it said.

"For many, the home has morphed from piggy bank to albatross," Deutsche analysts Karen Weaver and Ying Shen said in the report.

We can safely predict: housing prices in most areas are going lower(unless we get hyper inflation).