Half of Mortgages Underwater by 2011

Think the housing crisis is over? Think again: “The percentage of U.S. homeowners who owe more than their house is worth will nearly double to 48 percent in 2011 from 26 percent at the end of March,” according to the Associated Press. A report from Deutsche Bank says that “prime” loans that meet the guidelines of Fannie Mae and Freddie Mac will be most affected—41 percent will be underwater by the first quarter of 2011, up from 19 percent in 1Q 2009.