The twelve major markets, including Phoenix fell to their lowest level as measured by the current housing cycle.  This news comes on the heals of Congress pushing to close Fannie Mae and Freddie Mac that provide loans for lower income buyers and proposals from Washington that would establish a QRM (Qualified Residential Mortgage) which would make standard 20% down payment for a home loan.  If approved, the QRM standards would have eliminated 62% of first mortgages out there, making the recovery in the housing market even more elusive.