Yahoo - "Even Once-Strong Housing Markets Stumble" (1-30-09)

"Home prices in 20 major metro areas nationwide fell 18.2% in November -- a record annual pace -- as the deteriorating economy pulled down previously resilient markets, according to the S&P/Case-Shiller Home Price Index released Jan. 27"

San Francisco Chronicle - "Average rate on 30-year mortgages falls" (2-1-09)

"The average rate on a 30-year fixed mortgage dipped to 5.1 percent last week from 5.12 percent the previous week. At this time last year, the 30-year, fixed-rate mortgage averaged 5.68 percent. Mortgage rates have been declining since the Federal Reserve said in late November it would buy up to $500 billion in mortgage-backed securities to get banks to lend more money in hopes of bolstering the troubled housing market."

Bloomberg - "Treasury Real Yield at 16-Month High on Inflation Bet" (2-2-09)

"For the first time since 2007, Treasury investors are betting that inflation will accelerate. The yield on 10-year notes exceeds the consumer price index by 2.72 percentage points, the most since December 2006. The gap between two- and 10-year rates widened at the fastest pace in a year last month as traders demanded more compensation for longer-term debt. Treasury Inflation Protected Securities that signaled falling prices as recently as Nov. 20 show they will increase in the U.S. this year."

Bloomberg - "Obama to Require Banks Receiving Aid to Boost Lending" (2-2-09)

"President Barack Obama will require banks to boost lending to consumers and companies in return for taxpayer aid from the $700 billion bailout fund, in a departure from Bush administration policy, a key lawmaker said."

Bloomberg - "Asset Valuation ‘Key Issue’ in Bank Plan, Dugan Says" (2-2-09)

"Valuing toxic assets on bank balance sheets is among 'real key issues' as the Obama administration devises a plan to mend the financial system and steady credit markets, Comptroller of the Currency John Dugan said. The biggest challenge is how to 'pick and choose which assets to take from open institutions and how much you pay for them,' Dugan, the supervisor of U.S. national banks, said in an interview in his Washington office today."

Bloomberg - "San Francisco’s Tallest Condo Cuts Prices 15% as Glut Increases" (2-2-09)

"The cost of a Golden Gate Bridge view from the top of San Francisco’s tallest residential building just got 15 percent cheaper. Prices of all condominiums in the downtown Millennium Tower will be cut amid the city’s biggest housing glut since the dot-com crash in 2001, according to city planning data. The offer includes apartments already sold in the 60-story, 419- unit high-rise being built in the South of Market area."

Bloomberg - "Rise in Central Banks’ Agency Holdings ‘Noteworthy’" (2-2-09)

"The first increase in four months in foreign central banks’ holdings of so-called U.S. agency debt and mortgage bonds was 'extremely noteworthy,' showing those investors can be wooed back to the market, according to a Morgan Stanley analyst. Foreign central banks’ investments in the debt, including Fannie Mae and Freddie Mac securities, climbed $5 billion to $811.3 billion in the week ended Jan. 28, according to Federal Reserve data. That was the first rise since the week of Oct. 1."

Ventura County Star - "Consumer spending and incomes fall; savings rise" (2-2-09)

"The Commerce Department reported Monday that personal consumption spending dropped by 1 percent in December. That was slightly worse than the 0.9 percent decline economists expected. The government also revised its November estimate lower to show spending fell 0.8 percent rather than 0.6 percent in that month."

Orange County Register - "House stimulus plan offers little for O.C. housing" (2-2-09)

"The only thing that may help is the NOL provision (net operating loss). This is for ALL businesses, not just real estate. It allows companies to claim losses up to 5 years. The House version also includes an extension of the $7,500 tax credit to Sept 1, 2009. It does not require a pay back now. Not sure if $7,500 is enough to get Californians to start buying homes again."

Orange County Register - "Buena Park has hottest-selling new homes in O.C." (2-2-09)

"Lennar Corp.’s Laurel Gate development in Buena Park had the most sales in the fourth quarter of 2008, with 47 contracts signed during the final three months of the year. According to Lennar’s Web site and MarketPoint, the project consists of 122 single-family homes selling from $603,000 to $734,000. MarketPoint CEO Russ Valone said the site’s popularity may have something to do with the price range, which is below the $845,000 average for newly built single-family homes in the fourth quarter."