With the bogus propping up of Freddie Mac and Sallie Mae, all congress did was prolong the inevitable. The people that can't afford their mortgages today probably wont be able to afford them in 3 years either. When all those properties hit the market, then you will start seeing the real market correction combined with realistic loan rates in the 6-8% frame.
Remember though, most of the bubble was in the larger markets LAX, PHX, MIA etc. and most houses do not double in value every ten years (or even 2 years) like some of these pundits have been professing lately.
Not to mention this whole deal has really devalued the worth of the dollar and causing inflation along with a recession. The UK saw it in the 70s, Japan saw it in the 80s and now we are seeing it but we now also have the oil fiasco to deal with also.