The Press Enterprise - "Inland home sales plummet" (7-17-07)

"Inland Southern California's home sales last month were the worst in a decade in Riverside County and the worst on record in San Bernardino County. The slowing market took a toll on sales prices. The median sales price in Riverside County dropped to $400,000, down 5.9 percent from a year earlier. The median sales price flattened to $365,000 in San Bernardino County. It was the first month since May 2000 that San Bernardino's median price failed to register a year-to-year gain."

NAHB - "Builder Confidence Falls Further In July" (7-17-07)

"A surplus of unsold homes on the market, combined with ongoing concerns in the subprime mortgage arena and affordability issues associated with tightened lending standards and higher interest rates, continue to take a significant toll on builder confidence, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. The HMI declined four points to 24 this month, which is its lowest level since January of 1991."

Bloomberg - "Goldman, JPMorgan Saddled With Debt They Can't Sell" (7-17-07)

"Goldman Sachs Group Inc., JPMorgan Chase & Co. and the rest of Wall Street are stuck with at least $11 billion of loans and bonds they can't readily sell. The banks have had to dig into their own pockets to finance parts of at least five leveraged buyouts over the past month because of the worst bear market in high-yield debt in more than two years, data compiled by Bloomberg show."

Bloomberg - "Derivatives Banks Concerned by Hedge Fund Leverage" (7-17-07)

"Hedge fund borrowing to invest in credit derivatives may magnify volatility in a market slump, according to a Fitch Ratings survey of 65 banks and insurers. A 'dramatic' increase in hedge funds' use of credit derivatives has pushed their share of trading to 60 percent of credit-default swaps, and about 33 percent of collateralized debt obligations, Fitch said in the report today, citing data from Greenwich Associates."

Bloomberg - "Treasuries Rise on Speculation Subprime Losses Are Deepening" (7-17-07)

"U.S. Treasuries rose for a second day on speculation mounting losses in securities backed by subprime mortgage loans will fuel demand for government debt. Indexes based on the value of securities backed by the mortgages fell, with some making new lows. The benchmark 10-year note's yield last week touched a one-month low amid speculation the losses will eventually prompt the Fed to cut interest rates for the first time since 2003."

Real Estate Journal - "Effective Incentives to Woo Buyers and Sell Your Home" (7-17-07)

"Flashy incentives like a new car parked in the driveway or a flat-panel television hanging in the den might sound like a good way for home sellers to woo buyers in a dismal real-estate market. But when it comes to actually enticing someone to buy a home, it's the more practical perks that count, real-estate professionals say. 'Serious buyers are looking for a place to buy a home, not a trip to Tahiti,' says Dave Ledebuhr, owner of Musselman Realty in East Lansing, Mich. Moreover, lenders are leery of gimmicky incentives, fearing that they're built into the price of the home and that loan dollars are being used to pay for that tropical trip, he adds."