Bloomberg - "Subprime Mortgage Bonds From 2006 May Be Worst Ever (Update1)" (3-28-07)

"About 13 percent of mortgages made last year to people who have poor or bad credit are delinquent, S&P analysts Michael Stock and Scott Mason said in a report yesterday, with 6.65 percent of the total classified as ``seriously delinquent,'' or more than 90 days late. Losses on bonds backed by the loans will be between 5.25 percent and 7.75 percent, compared with 5.5 percent in 2000, S&P forecasted."

ABC - "Merced Leads Way in Dropping Median Home Prices" (3-28-07)

"Local realtors say the housing market is simply coming back down to reality after a period of inflation in Merced. But that may not be enough to console homeowners who are having trouble selling their houses."

Market Watch - "Bernanke sees moderate growth, slower inflation" (3-28-07)

"Despite heightened risks from the contraction in housing and the slump in manufacturing, the U.S. economy will most likely achieve moderate growth this year with gradually slowing inflation, Federal Reserve Chairman Ben Bernanke said Wednesday."

North County Times - "Pay your share of subprime debt" (3-28-07)

"Even if you don't own a home, or have never taken out one of these high-interest mortgages geared for borrowers with poor credit, you might need to think again. You could own a piece of the multibillion-dollar market in risky mortgages ---- through your pension plan or a mutual fund. As the bull market in housing rampaged between 2001 and 2006, Wall Street did not sit idly on the sidelines. It jumped in to enjoy the spoils."

CNN - "Paulson: Housing damage 'contained'" (3-28-07)

"U.S. Treasury Secretary Henry Paulson said Wednesday damage to the American economy from the housing market downturn and subprime mortgage foreclosures 'appears to be contained'. Paulson, testifying before a House Appropriations subcommittee, said the Treasury was monitoring housing market developments closely but was encouraged by signs that the housing downturn was at or near a bottom."

Yahoo! - "Contrarian advice: Invest in real estate now" (3-28-07)

"Real estate has its market cycles like any type of investment, and lately it's been getting bad press. Investors may have second thoughts about putting money in this asset class right now, what with all the talk about a bursting housing bubble, the glut of unsold condominiums and homes, declining property values and the growing number of foreclosures."

CNN - "Homebuilders: The wild ride isn't over" (3-28-07)

"Shares of the top 5 builders have tumbled since the housing market peaked. But it still may be too soon to buy."

Market Watch - "New Century bankruptcy looms, report says" (3-28-07)

"New Century Financial Corp. reportedly could file for bankruptcy protection from creditors by Saturday in a move that's grown more likely since the subprime mortgage company's delisting from the New York Stock Exchange two weeks ago."

CBIA - "Total Housing Starts Drop 6 Percent in February" (3-28-07)

"Total housing starts in California fell back once again in February, showing a modest 6 percent decrease from January, but a 42 percent drop when compared to February 2006, the California Building Industry Association announced today. In February, permits were pulled for 6,214 single-family homes statewide, down 9 percent from the previous month and 35 percent from February 2006, while multifamily housing starts — condos and apartments — totaled 3,111, down almost 1 percent from the previous month but down 53 percent from February 2006. Both February and March 2006 saw unusually large numbers of multifamily permits, however."

OC Register - "Pimco's Gross says 'tighter credit' threatens economic growth" (3-28-07)

"Bill Gross, manager of the world's biggest bond fund, said mortgage lenders will tighten credit requirements to forestall the threat of predatory lending legislation, increasing the risk of recession."

Bloomberg - "Subprime Mortgage Collapse Eviscerates California Headquarters" (3-28-07)

"Hometown lenders including New Century and Ameriquest Mortgage Co. already have fired more than 3,000 people, house and condominium prices are down 17 percent since June and office vacancy rates are poised to double this year, said John McDermott, regional manager for Orange County at commercial real estate broker Sperry Van Ness."

CNN - "Mortgages fall amid slowing market" (3-28-07)

"Mortgage applications declined last week as refinancing dipped while purchase activity barely budged, an industry group said Wednesday. The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications dipped 0.2 percent to 671.0 in the week ended March 23."

OC Register - "A new tool for understanding mortgages" (3-28-07)

"Homeowners and homebuyers who have been in the dark about how mortgages work have a new tool to help them decide what loan is best for them – the Mortgage Payment Index. The quarterly index, created by Susan Wachter, a real estate professor at the Wharton School in Pennsylvania working with Genworth Financial, gives consumers information about current trends in mortgages. Wachter discusses below why the index was developed and how consumers can use it. "

Real Estate Jounral - "Real-Estate Commissions Fall; McMansions Face Declining Demand" (3-28-07)

"The 6% real-estate commission is becoming a thing of the past, a Miami Herald article reports. According to the newspaper, which draws upon a Realogy Corp. (which owns Coldwell Banker and franchises Century 21 and others) annual report, the average commission earned in 2006 was less than 5%, or 2.5% per agent, the Herald says."

LA Times - "Metro home price index down 0.7%" (3-28-07)

"Prices of single-family homes across the nation depreciated in January compared with the same month last year, the worst results in more than 13 years, a housing index released Tuesday by Standard & Poor's showed. The S&P/Case-Shiller composite index showed a drop of 0.7% from a year earlier in the price of a single-family home based on existing homes tracked over time in 10 metropolitan markets. In January 1994 the index dropped by 0.9%, compared with a year earlier, S&P said."

LA Times - "Bernanke: Economy on upswing despite housing slump" (3-28-07)

"Federal Reserve chairman Ben S. Bernanke reassured Congress today that economic growth was on the upswing despite a housing slump worsened by the collapse of the market for high-risk sub-prime mortgages. In testimony before the Joint Economic Committee, Bernanke said the sub-prime market turmoil had created financial crises for many families. But with other types of mortgages remaining stable, he said, 'the impact on the broader economy and financial markets seems likely to be contained.'"

CNN - "Bernanke: Focus still on inflation" (3-27-07)

"The Federal Reserve has not shifted away from fighting inflation but is looking for more room to maneuver in an environment of heightened risk, posed in part by risky mortgage loans, Chairman Ben Bernanke said Wednesday. 'We are looking for a bit more flexibility given the uncertainties that we are facing and the risks that are occurring on both sides of our outlook,' Bernanke testified before the Joint Economic Committee of Congress."

CNN - "Why Iran matters to oil markets" (3-28-07)

"Tehran is ensnared in a growing dispute with the West. Traders are nervous it might pull its oil off the market."