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MOUNTAIN HOUSE, Calif. - This town, 59 feet above sea level, is the most underwater community in America.

A visit to the area over the last couple of days shows how the nationwide housing crisis is contributing to a broad slowdown of the American economy, as families who feel burdened by high mortgages are pulling back on their spending.

Jerry Martinez, a general contractor, and his wife, Marcie, an accounts clerk, are among the struggling owners in Mountain House. Burdened with credit card debt and a house losing value by the day, they are learning the necessity of self-denial for themselves and their three children.

No more family bowling night. No more dinners at Chili’s or Applebee’s. No more going to the movies.

“We make decent money, but it takes a tremendous amount to pay the mortgage,” Mr. Martinez, 33, said.

First American CoreLogic, a real estate data company, has calculated that 7.6 million properties in the country were underwater as of Sept. 30, while another 2.1 million were in striking distance. That is nearly a quarter of all homes with mortgages. The 20 hardest-hit ZIP codes are all in four states: California, Florida, Nevada and Arizona.

By David Streitfeld, NY Times
11/10/2008

[According to the interactive map that accompanies this article, Texas ranks #3 in total homes under water (market values less than mortgage), behind only California and Florida. To read the rest of the article, visit... http://www.nytimes.com/2008/11/11/business/11home.html?_r=1]

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