Phoenix's Underwater Mortgages Show Weakness in Housing Threatens Recovery

"One year ago, there were signs that housing was healing; new home sales were up and prices rising. Now, new home sales are below levels hit at the depth of the recession two years ago, and 23 percent of all borrowers -- more than 11 million homeowners -- owe lenders more than their homes are worth. The renewed weakness is keeping a lid on consumer confidence, consumption and growth."