The graph below of the Phoenix area monthly housing payment is taken from data from ASU Realty Studies.

The graph shows data through the third quarter of 2008. Because home prices and mortgage rates have fallen since then, I expect the monthly housing payment in the fourth quarter of 2008 will be below $1,000 per month, down from the peak of $1,675 a month in the second quarter of 2006.

The real estate bust is bad news for homeowners and lenders but it’s great news for home buyers.