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U.S. foreclosure filings rose 90% in May from a year earlier, according to a report issued by RealtyTrac Inc. earlier today. RealtyTrac Inc. is a seller of foreclosure data based in Irvine, California. James Saccacio, the CEO of RealtyTrac, said, “Such strong activity in the midst of the typical spring buying season could foreshadow even higher foreclosure levels later in the year.” That will add “to the downward pressure on home prices in many areas.” Typically, more than half of all home sales take place in the April-June period.

The findings by RealtyTrac come on the heels of Monday’s release of the “State of the Nation’s Housing” report by Harvard University’s Joint Center for Housing Studies. According to the report, in 2006 median house prices increased at least 10% in 23 of 149 metropolitan areas studied, and prices fell in 34 of these areas. Of the 11 that declined more than 3%, 9 were in economically-depressed areas in the Midwest, which suggests local economic trends were more significant than national trends at the present time. However, home prices should slide further, according to the report. One finding reveals just how far homeowners are stretched to afford their residence. According to Rachel Drew, a research analyst for the Center, “In just one year the number of households spending more than half their income on housing increased a startling 1.2 million to 17 million in 2005.” The traditional limit for housing expenses, still used by many lenders, is 28% of gross monthly income, while some financial advisors recommend capping your outlay at 25%. Too much of a house payment can, at the very least, leave you with too little money for other goals, such as retirement. At worst, it can leave you vulnerable to foreclosure and bankruptcy.