Either the government steps out of the way, lets interest rates rise and people default, thus making homes more affordable, or they intentionally keep interest rates low to prop up housing prices. But one thing will never happen: the government keeping interest rates low while simultaneously making homes more affordable. People forgot one fundamental rule–interest rates move inversely to housing prices.

The real solution is to get the government out of the real estate market and let things correct naturally. Let people default. It's not a bad thing. People look at the increased default rates and falling prices as some sort of bad disease; however, the bad disease was the insanity that led people to pay those prices in the first place! The defaults and foreclosures are the medication, not the problem.