CBIA - "California New Home Market Sees No Improvement in July, CBIA Announces" (9-15-08)

"The monthly CBIA/Hanley Wood Market Intelligence (HWMI) New Home Sales and Pricing Report showed that new home sales in July were 57 percent below July 2007. The decline was similar to the 58 percent year-over-year drop seen the month prior, and is a testament to the ongoing weakness in California housing market conditions. During July, 2,348 homes and condominiums were sold in the subdivisions tracked by Costa Mesa-based HWMI, compared to 5,437 in July 2007. During the current period, sales of single family homes were off by 54 percent, while sales of townhomes and “plexes” – duplexes, triplexes, etc. – were down 50 percent and sales of condominiums were down by nearly 67 percent."

Yahoo - "Paulson says Lehman bailout was never an option" (9-15-08)

"Briefing reporters at the White House, Paulson said he 'never once' considered it would be appropriate to put taxpayer money at risk to resolve the problems at Lehman Brothers. The nation's fourth largest investment bank filed for bankruptcy protection earlier Monday."

Yahoo - "Wachovia shares nosedive amid rising bank concerns" (9-15-08)

"Wachovia Corp. shares plummeted Monday amid intensified concerns on Wall Street about big banks' exposure to bad mortgage loans. Shares of the fourth-largest U.S. bank, already down more than 70 percent from a year ago, tumbled another $3.56, or 25 percent, to $10.71."

Yahoo - "Top Economist: Americans Should Worry About Bank Deposits if Congress Doesn't Act" (9-15-08)

"Americans are justified to be worried, says Nouriel Roubini, of NYU's Stern School and RGE Monitor, who notes there is already a 'slow-motion run on retail banks' occurring nationwide.
That "run" could accelerate as people realize the FDIC fund has about $50 billion to 'insure' about $1 trillion in assets at the nation's financial institutions, says Roubini. 'They're going to run out of money' unless Congress acts soon to recapitalize the FDIC."

Yahoo - "Bank of America agrees to buy Merrill for $50 bln" (9-15-08)

"Bank of America on Monday began adding another slice to its growing financial services empire, buying Merrill Lynch in a $50 billion deal that would create a bank that offers everything from fixed-income trading to credit card lending."

Bloomberg - "Washington Mutual Hobbled By Increasing Defaults on Option ARMs" (9-15-08)

"As many as 45 percent of borrowers with payment-option adjustable-rate mortgages issued from 2004 to 2007 and bundled into securities may default, according to Fitch Ratings analysts Roelof Slump and Stefan Hilts. Washington Mutual held $52.9 billion of the mortgages, also called option ARMs or negative amortization loans, on its books in the second quarter, with defaults doubling to $3.2 billion from the end of 2007, according to a filing with the U.S. Securities and Exchange Commission."

Realty Times - "Washington Report: Seizure of Fannie and Freddie" (9-15-08)

"The dramatic seizure of Fannie Mae and Freddie Mac by the federal government has had no downsides for real estate -- although it could ultimately cost taxpayers billions if the companies' loan portfolios continue to bleed red ink."

Realty Times - "Condo Trends: Green – Color of Money and New Condos" (9-15-08)

"Big-city developers are beginning to pick up on developing and building earth-friendly projects. Over the years, alternative energy sources were usually reserved for those folks living in more rural areas, with the personal budgets to build solar panels and one-stand wind mills to create a personal power grid. Now, condo developers are taking it to the next level in urban development."

Realty Times - "Mortgage Rates Plunge in Freddie Mac Weekly Survey" (9-15-08)

"Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.93 percent with an average 0.7 point for the week ending September 11, 2008, down from last week when it averaged 6.35 percent. Last year at this time, the 30-year FRM averaged 6.31 percent."