Many experts are tempted to state that after 4 years of declining home prices, the worst is over. According to Scott Simon, head of real estate analysis for Pimco, “The housing bust is so much worse than other ones. It’s hard to tell when it will end.” He goes on to point out that the housing affordability index is at an all time high. ” I would never have believed that this index could get so high. A rise in affordability should have spurred purchases, boosting prices and keeping a lid on the index” says Simon. He believes that main reason for this is that credit is not available to most people. “houses aren’t cheap if you can’t get the loan” he points out. He worries that the problem is likely to get worse when Fannie Mae, Freddie Mac and the FHA drop the maximum mortgage they will buy from $729,750 to $625,000. Read article.