According to the ADP report, the two sectors of the economy hit the hardest by the problems in the mortgage markets have, unsurprisingly, been residential construction and financial activities related to home sales and mortgage lending.
It is closing its stand-alone home lending offices and its business of lending to mortgage brokers.
Apartments, where the pace of increases is in line to slacken from 5% to 4%, have benefited from still high home prices and tightening mortgage-lending standards.
Thus both home-equity lending and mortgage refinancing, which allow households to tap into the capital gains on their homes, have helped to support consumer spending during the recent downturn.
But he had the gumption to go relentlessly after it, says Deepak Parekh, chairman of home mortgage company HDFC, which started lending to DLF early in its expansion drive.
Without such intervention net new mortgage lending - gross new home loans minus repayments and redemptions - would fall below zero in 2009 and see only a modest recovery in 2010, he said.
However, with mortgage lending booming, house prices surging and home-owners tempted to borrow against the rising equity in their homes, the Bank will be worried about inflation.
While sales of less expensive homes struggle to manifest under ever-tightening mortgage lending practices, the luxury end is comprised of home buyers with money to throw down.
Bank of America has been cutting down on its Home Loans business with the recent decision to exit the wholesale lending and reverse mortgage businesses as well as the decision to sell Balboa Insurance.
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Mary Hobbs, 69, is closing on a reverse mortgage with Security One Lending of San Diego for her three-bedroom home in a retirement community in Lincoln, Calif.
Mortgage borrowing is down significantly, the consequence of foreclosures, falling home values, tighter lending standards and weak home sales.
He is calling for a temporary guarantee with taxpayers' money of new mortgage-backed securities - the bundles of home loans sold on by banks to investors to fund fresh lending.
In recent weeks, there have been some signs that Funding for Lending was feeding though into the mortgage market, thus helping to cut the price of home loans.
Since the early 1990s, the government has been attempting to expand home ownership in full disregard of the prudent lending principles that had previously governed the U.S. mortgage market.
Paulson called for the licensing of mortgage brokers and he said regulation had to be strengthened to keep pace with all the recent innovations in home lending.
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