The mortgage industry in some areas is beginning to lag, and employees are being laid off all over. It's not just the big companies anymore, even smaller companies are starting to be affected by the slow in sales. The same offices that were booming with business, giving away loans because they cold afford to - brokers are beginning to close their loan officers' deals just to make a commission to keep on top of the business expenses. Much of this slowdown can be blamed on the inflated prices, rising interest rates, and increasing personal debt (affordability). I would call it "TNT" - that is "Too much inventory - Not enough buyers - Too many sales people".

When there is too much inventory of any product, whether it's ragdolls from China, or luxury homes in the hills of San Francisco, prices will go down. It's a simple case of supply and demand, and with the current inventory in what used to be called "high growth areas" we will almost undoubtedly see prices "correct" themselves as people become more and more unwilling to pay the inflated prices we are seeing today. Even if they don't drop very drastically in every neighborhood, they will for the majority be getting much lower in the future in the high inventory areas. Although this is just my prediction, and it will probably take a few years to hit the low, I believe that we are at the breaking point, and about to see the bottom drop out.