The economy is topic number one right now for politicians in Washington and homeowners here in Las Vegas. A stunning foreclosure report released Tuesday ranks Nevada worst in the nation in the ongoing mortgage meltdown.

News 3's Steve Crupi has more on yet another dubious distinction for our state.

The magnitude of the sub-prime mortgage mess is still being calculated, but the latest stats from California-based Realty Trac show a one-year jump in foreclosures of 79-percent nationwide.

But here in Nevada foreclosures jumped 200 percent with more than 66,000 filings last year. In Las Vegas the crisis is magnified even further, especially in certain neighborhoods where homebuyers were enticed to buy with deals they ultimately couldn't afford.

In Las Vegas Zip code 89131 currently there are more than 2,200 houses in some state of the foreclosure process.

On the national scene, lawmakers are still scrambling to find a solution. "Experts predict the worst is still ahead, as the large majority of sub-prime borrowers will face a 40 percent or higher increase in their monthly mortgage payments once the teaser rates expire," Rep. Loretta Sanchez (D) California said.  

The Federal Reserve is considering lowering interest rates again Wednesday. A move that could give cash-strapped banks and homeowners another chance to hold on to their investments.

In Nevada 3.4 percent of all homes went into foreclosure in 2007; three times the national average. In another housing note, the Commerce Department reports that sales of new homes dropped 26 percent from a year ago. That the steepest decline since records began in 1963.