It seems that after 5 years of rocket drive appreciation the real estate market in Sacramento, California may be in for a rough landing. Wall Street has had its second down day in a row as fears of the credit and the mortgage problems continue to dampen spirits on the Street. If rates continue to rise, less and less buyers will be able to qualify for homes in this market as incomes have not kept pace with the appreciation of price in the real estate market. As less people can afford homes the almost record number of listings will have even more downward pressure. As this occurs more and more people may be put into an upside down situation where they can't sell for what they owe, they can't refi because they can't qualify and more foreclosures and shorts sales will hit the market compounding the problem. Countrywide released data two days ago stating that all of the 2nd loans (Home Equity loans) they have made on primary residences are basically unsecured debt. This means in foreclosure they are rarely paid off, since the equity is gone, the concern is the fact that 5% of there non sub prime loans, people with good jobs and good credit are more than 3 months late. This has signaled to Wall Street that the problems may run much deeper than just the sub prime market that has become almost extinct in the past year.