Market Watch - "Subprime could create global crisis, economist says" (8-2-07)

"The problems in the U.S. subprime mortgage market could spiral out of control into a global financial crisis, economist Mark Zandi said Thursday. With a "high level of angst" in the financial markets about who will take the losses from more than $1 trillion in risky mortgages, we could be just one hedge-fund collapse away from a global liquidity crisis, said Zandi, chief economist for Moody's Economy.com. A global meltdown is not likely, but the risks are growing, Zandi emphasized in a conference call with reporters following the release of a new study on subprime debt that concludes that the housing crisis could be deeper and last longer than investors now believe. Read the latest data on home sales."

Big Builder Online - "NAHB: No Return to Normal Before 2010" (8-2-07)

"Demand for new housing is still declining and won't start to rebound until 2008, the chief economist of the National Association of Home Builders said Wednesday. 'The big question is: Is this ball still rolling downhill? I think it is,' said the economist, David Seiders, in his midyear forecast for the home-construction industry. 'We're dealing with some major problems out there.'"

NAHB - "New-Home Sales Slide 6.6 Percent In June As Home Buyer Demand Remains Slack" (7-26-07)

"Sales of new single-family homes slipped 6.6 percent in June to a seasonally adjusted annual rate of 834,000 units as home buyer demand continued to weaken, according to figures released by the U.S. Commerce Department today. The June sales pace was 22.3 percent below a year earlier, and down 40 percent from the housing market peak in mid-2005. 'The ongoing contraction in home sales is consistent with NAHB’s surveys of single-family builders. Our Housing Market Index now is down to the lowest level since January 2001, when the national economy was in recession,' said Brian Catalde, president of the National Association of Home Builders (NAHB) and a home builder from El Segundo, Calif."

Palm Beach Post - "County sees first sizable dip in home prices" (7-26-07)

"Sales of existing homes in Palm Beach County declined in June, but not as much as in many other parts of the state, according to a Florida Association of Realtors report released Wednesday. Still, sales of existing single-family homes fell 19 percent when compared with June 2006, and the median price took a tumble to $377,900 from $405,500. It was the first significant drop - 7 percent - in home prices since the market started cooling off from its unprecedented run-up two years ago."

Washington Post - "Easy Money, Lifeblood Of Economy, Is Drying Up" (7-26-07)

"In just a few days, shares of Internet travel company Expedia lost 12 percent of their value, one of the highest-flying executives on Wall Street watched his fortune shrink and the nation's largest mortgage lender said many Americans with good credit were in danger of losing their homes. At the root of those seemingly unrelated events is a single new reality, one that could portend trouble for the broader U.S. economy: The era of cheap money appears to be ending."

Washington Post - "Home Sales on a 'Staircase to the Basement'" (7-26-07)

"Sales of existing homes fell in June for the fourth straight month as problems in the mortgage industry continued to hurt the housing market. The National Association of Realtors reported yesterday that sales of previously owned homes dropped 3.8 percent from May to a seasonally adjusted rate of 5.75 million units, the slowest pace in more than four years. It was also 11.4 percent less than the number of units sold in June 2006."

Bloomberg - "Goldman Sachs, Bear Stearns Bond Risk Surges, Credit Swaps Show" (7-26-07)

"The risk of owning bonds of Wall Street firms surged as concerns escalated that investment banks will be hurt by rising losses from subprime mortgages and a freeze in demand for corporate debt. Credit-default swaps on $10 million of Goldman Sachs Group Inc. bonds jumped as much as $18,000 to a record $85,000, according to broker Phoenix Partners Group in New York. Bear Stearns Cos. credit swaps surged as much as $29,000 to $110,000, also a new high. Lehman Brothers Holdings Inc. climbed as much as $24,000 to $104,000."

Bloomberg - "Absolute Capital Hedge Fund Suspends Withdrawals" (7-26-07)

"Absolute Capital Group Ltd., an Australian hedge fund that invests in collateralized debt obligations, suspended withdrawals from two of its funds after forecasting losses amid a rout in U.S. subprime mortgages. The firm froze its Yield Strategies Fund and Yield Strategies Fund NZD, which together have about A$200 million ($177 million) under management, Chief Investment Officer Bill Entwistle said in an interview today. The Sydney-based company is 50 percent owned by ABN Amro Holding NV's Australian unit"

Yahoo - "Wells Fargo shuts nonprime mortgage unit, cuts jobs" (7-26-07)

"Wells Fargo & Co. (NYSE:WFC - News), the second-largest U.S. mortgage lender, said on Thursday it will close its nonprime wholesale lending business, which processes and funds loans for third-party brokers, citing turmoil in the market for riskier home loans. The company will shut operations in Baton Rouge, Louisiana, resulting in a loss of 170 jobs, and in Des Moines, Iowa, where it will seek other positions for 67 affected workers. Wells Fargo's home mortgage unit is based in Des Moines, while the parent is based in San Francisco."

Yahoo - "Beazer Homes Swings to 3Q Loss" (7-26-07)

"Beazer Homes USA Inc. said Thursday it swung to a loss in the fiscal third-quarter after the homebuilder cut prices to spur sales and took major charges to write down the value of unsold inventory. For the three months ended June 30, the company posted a loss of $123 million, or $3.20 per share, compared to a year ago when it earned $102.6 million, or $2.37 per share."

Yahoo - "D.R. Horton Swings to 3Q Loss" (7-26-07)

"D.R. Horton Inc., posted a third-quarter loss Thursday as one of the nation's largest homebuilders wrote-down the value of unused land and warned there was no recovery in sight for the troubled housing industry. Shares of Horton tumbled to a 52-week low, losing 88 cents, or 5 percent, to $16.60 in late-morning trading."

Los Angeles Times - "Optimists win in volatile day on Wall Street" (7-26-07)

"Stocks rebounded somewhat Wednesday on some strong earnings and new takeover deals, but not without a struggle as mounting signs of a tougher lending climate again dogged investors. Share prices seesawed throughout the session a day after the Dow Jones industrial average tumbled 226 points. Ultimately, the market drew confidence from better-than-expected earnings at Amazon.com and Boeing and from acquisitions involving German engineering company Siemens and maker Merck."

Los Angeles Times - "Industry's foundations get shakier" (7-26-07)

"Three major home builders reported quarterly losses Wednesday, and a real estate trade group said that nationwide sales of existing homes fell to their lowest level in nearly five years. The fresh data came one day after the nation's biggest mortgage lender reported more delinquencies among even its better customers, and a market research firm said California foreclosures were soaring."

Real Estate Journal - "Tips for How to Invest In a Foreclosed Home" (7-26-07)

"Investing in foreclosed homes can be profitable, but novices need to tread carefully. Generally, you can't inspect homes prior to auction -- a home in need of major repairs could negate a bargain purchase. Some may come with hidden liens or utility bills to pay. State and local rules vary, so understand the process before bidding and know the existing homeowner's rights. Investors can find foreclosure listings at the county court clerk's office or sheriff's department. For a fee, Foreclosure.com and RealtyTrac.com provide up-to-the minute listings. A title-search company can help determine if there are any outstanding liens on a home. Also, consider negotiating directly with lenders to buy bank-owned homes. Countrywide, among other lenders, lists online homes it's selling."