NAR - "Pending Home Sales Show Effects of Weather, Possible Subprime Impact" (4-3-07)

"A forward-looking index based on pending home sales indicates that bad weather, and possibly the loss of some subprime lending, will dampen sales closed in March and April, according to the National Association of Realtors®."

"The Pending Home Sales Index,* based on contracts signed in February, stood at 109.3 – down 8.5 percent from February 2006 when it reached 119.4, but is 0.7 percent higher than a downwardly revised reading of 108.5 in January. Earlier, mild weather caused the index to spike at 113.3 in December."

"David Lereah, NAR’s chief economist, said there has been a steady narrowing from year-ago readings since last July. 'If it wasn’t for the unusually bad weather in February, we’d be seeing a better performance in pending home sales,” he said. “We also may be seeing some fallout from a decline in subprime lending, but a slight improvement in the more volatile month-to-month index is encouraging – the data suggests an underlying stabilization is taking place in the housing market, but it will take another month or two to clarify.'"

Reuters - "Mortgage crisis calls American Dream into question" (4-3-07)

"There is no shortage these days of tragic stories of homeowners caught in America's subprime mortgage meltdown, as risky borrowing, reckless lending and a slump in the housing market drives millions into foreclosure. But while statistics show poor and minority homeowners are bearing the brunt of the crisis, the belief that every American can or should own their own home remains so pervasive few politicians admit that it just might not be true."

Market Watch - "Pending home sales up 0.7% in February" (4-3-07)

"Pending sales of U.S. homes rose by 0.7% in February, although the gain may have been held in check by bad weather during the month and by possible repercussions from the shakeout in subprime lending, the National Association of Realtors said Tuesday."

OC Register - "New Century 'Like Titanic sinking'" (4-3-07)

"The end came as no surprise, but it was still a shock for laid-off workers at New Century Financial Corp. when the Irvine-based subprime lender filed for bankruptcy protection Monday."

Washington Post - "Fannie Mae Plans To Cut Workforce" (4-3-07)

"Fannie Mae, the District-based mortgage funding company, plans to reduce its workforce by several hundred full-time employees by the end of this year, a company spokesman said."

Builder Online - "Subprime, Alt-A Woes to Shrink Borrower Market" (4-3-07)

"The bottom line for builders is that as lenders go under, tighten the qualification process, or face possible government restrictions on future subprime or Alt-A loans, the pool of potential borrowers for new home purchases could be negatively impacted by as high as 20 percent."