Yahoo - "S&P cuts outlook on some banks, other financials" (7-1-08)

"Standard & Poor's on Tuesday lowered its outlook on diversified banks and other diversified financial services companies to 'Negative' from 'Neutral,' warning that some may need to cut dividends and raise additional capital to cover mounting loan losses."

Yahoo - "Construction spending drops 0.4 percent in May" (7-1-08)

"Construction spending fell in May for the 11th time in the past year as a continuing slump in housing offset strength in nonresidential building. The Commerce Department reported Tuesday that construction spending dropped 0.4 percent in May, slightly less than had been expected. There was strength in spending on hotels and office buildings but continued declines in housing, which has been in a slump for two years."

Bloomberg - "Bank of America to Acquire Countrywide for 37% Less" (7-1-08)

"Bank of America Corp. will buy Countrywide Financial Corp., the home lender battered by the collapse of the subprime mortgage market, for about $2.5 billion, 37 percent less than originally planned."

Bloomberg - "Broad Says Economy in Worst Slump Since World War II" (7-1-08)

"Billionaire investor Eli Broad said the U.S. economy is in the worst recession since World War II and a recovery in the housing market is 'several years' away. 'This is worse than any recession we've had since World War II,' Broad, 75, said in an interview yesterday. Broad, the founder of homebuilder KB Home, said the U.S. should avoid a depression on the scale of the 1930s because the country now has sufficient 'safety nets.'"

Bloomberg - "Old Republic to Deliver Recovery Plan to Freddie Mac" (7-1-08)

"Old Republic International Corp.'s mortgage insurance unit will submit a plan to Freddie Mac showing actions to improve its financial strength after a downgrade by Moody's Investors Service. Old Republic, based in Chicago, has 60 days to give the second-biggest buyer of home mortgages details on restoring an Aa3 rating, Freddie Mac said today in a statement. The insurer was cut one level from A1 on a drop in capital and questions about profitability, Moody's said in a separate statement."

Bloomberg - "San Francisco Downtown Office Vacancy Rises Most in Five Years" (7-1-08)

"The vacancy rate for San Francisco's best office space rose the most in five years in the second quarter as tenants signed fewer leases amid a slowing U.S. economy, according to Cushman & Wakefield Inc. The office vacancy rate for Class A space, the highest quality in the most sought-after locations, increased 1 percentage point from the first quarter to 9.1 percent, the biggest jump since 2003 when San Francisco was reeling from the collapse of the technology bubble, said Cushman, the largest closely held commercial brokerage. Average Class A rents rose 4 percent to $48.77 a square foot."

Realty Times - "Real Estate Marketing Strategies: The Biggest Mistake Real Estate Agents Make And How You Can Avoid It" (7-1-08)

"How often have you heard someone say that when business is down and the economy is questionable? It seems logical, doesn't it, to tighten your purse strings? Even though it seems logical to tighten up and constrict spending, it is actually based on a 'scarcity' mindset. In a scarcity mindset you focus on lack in your business, and on lack in outer conditions and the market."

Realty Times - "Gas Prices Fuel Urban Desire" (7-1-08)

"A recent Coldwell Banker Associates Report, "Interest in Urban Homeownership Fueled by Higher Gas Prices", found that the vast majority of sales associates' clients -- 78 percent -- said the rising cost of gas has increased their desire to live in the city instead of the suburbs."

Orange County Register - "O.C. ranked nation’s 7th riskiest home market" (7-1-08)

"And that’s good news. Mortgage insurer PMI’s quarterly rankings of the shakiness of the 50 big U.S. housing markets says there’s a 85.8% chance that O.C. home prices will be lower two years from now. "

Orange County Register - "Distressed homes now 40% of O.C. supply" (7-1-08)

"Home market watcher Steve Thomas at Re/Max Real Estate Services in Aliso Viejo reports that the number of O.C. distressed properties (homes listed by agents as foreclosures or short sales) was 5,946 last week, up 48 vs. two weeks earlier or a 0.8% gain. Two weeks ago, distressed homes for sale fell by 7, the first drop of 2008."