Moody's Economy.com believes that nationally, home prices are currently down 20% from their peak in 2006, and economists at the firm anticipate that prices will drop another 10% before the bloodletting is over. Consumer economist Scott Hoyt at Economy.com told MortgageWire that the firm believes that one in six homeowners currently owe more on their mortgage than the home is worth. That's up from just 6% in 2007. And the number of homeowners who are underwater could grow next year. "I think we are maybe two-thirds of the way through" the housing downturn, Mr. Hoyt said. Economy.com anticipates that prices will bottom in the summer of 2009 but will not begin to recover much before the middle of 2010.
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