NAHB - "Credit Tightening Weighing On Builder Confidence In August" (8-15-07)

"Highly visible problems in the housing finance system are contributing to a wait-and-see attitude among prospective home buyers and reducing builder confidence in the single-family housing market, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. The HMI declined two points to 22 in August, its lowest level since January 1991."

NAR - "Second-Quarter Metro Homes Prices Improving But Sales Down in Most States" (8-15-07)

"Home price trends are improving in metropolitan areas but existing-home sales during the second quarter were below a year ago in most states, according to the latest quarterly survey by the National Association of Realtors. In the second quarter, 97 out of 149 metropolitan statistical areas 1 show year-over-year increases in median existing single-family home prices, including nine areas with double-digit annual gains; 50 had price declines; and two were unchanged. In the first quarter of 2007, revised data shows 83 areas had annual price increases, while in the fourth quarter of 2006 only 68 areas were up."

MBA - "Mortgage Applications Increase in Latest MBA Weekly Survey" (8-15-07)

"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending August 10, 2007. The Market Composite Index, a measure of mortgage loan application volume, was 678.7, an increase of 3.4 percent on a seasonally adjusted basis from 656.5 one week earlier. On an unadjusted basis, the Index increased 2.7 percent compared with the previous week and was up 20.6 percent compared with the same week one year earlier. The Refinance Index increased 2.6 percent to 1929.6 from 1881.1 the previous week and the seasonally adjusted Purchase Index increased 3.9 percent to 464.9 from 447.4 one week earlier. On an unadjusted basis, the Purchase Index increased 2.8 percent to 500.4 from 486.9 the previous week. The seasonally adjusted Conventional Index increased 3.1 percent to 987.9 from 958.5 the previous week, and the seasonally adjusted Government Index increased 6.7 percent to 163.2 from 152.9 the previous week."

The Washington Post - "Retailers Fret That Credit Crunch Will Sap Spending" (8-15-07)

"Stocks tumbled Tuesday after Wal-Mart and Home Depot cautioned that the housing slump and weak consumer spending would depress earnings, raising doubts about the strength of the U.S. economy. The retailers released earnings reports at a time when jittery investors were watching the credit market for clues about how much more pain the mortgage industry might unleash."

Bloomberg - "Basis Capital Tells Investors Loss May Exceed 80%" (8-15-07)

"Basis Capital Fund Management Ltd. told investors losses at one of its hedge funds may exceed 80 percent as the U.S. subprime mortgage rout prompted creditors to force the Sydney-based company to sell assets. Basis Capital is unable to 'accurately estimate' the value of units in its Yield Fund, the hedge fund said today in a letter sent to investors and obtained by Bloomberg News. The losses have worsened since a month ago, when it said the fund may decline more than 50 percent. The firm managed $1 billion in March."

Market Watch - "Fund managers still positive on equities - survey" (8-15-07)

"Fund managers remain relatively positive about the prospects for global equity markets, even after the recent market downturn, according to Merrill Lynch's monthly fund manager survey for August. 'Fund managers have turned more risk adverse but still believe equities offer value, particularly relative to bonds,' the survey said. The recent equity market correction around the globe has been largely driven by investors assessing the ongoing fall out from the recent subprime mortgage market woes in the U.S. and its impact on the credit markets."

Market Watch - "Redemption songs" (8-15-07)

"Everything's funny when you're making money. For select fund managers around the street, it might be a while before they smile. Today is redemption day for funds with a 45-day advance notice redemption window. What that means in plain English is that well-heeled hedge fund investors, many of whom are watching in horror as the smartest money in the Street takes a beating, will have the chance to leave the dance."

Yahoo - "Existing Home Sales Fall in 41 States" (8-15-07)

"Sales of existing homes fell in 41 states during the April-June quarter while home prices were down in one-third of the metropolitan areas surveyed, a real estate trade group reported Wednesday. The new figures from the National Association of Realtors underscored the severity of the current housing slump, the worst downturn in 16 years. However, Realtors officials said they saw some glimmers of hope in the data. They noted that existing home prices were up in 97 of the 149 metropolitan areas surveyed compared with the sales prices of a year ago."

Bloomberg - "Corporate Bond Risk Rises as Bankruptcy, Default Fears Spread" (8-15-07)

"The risk of owning corporate bonds rose after a Merrill Lynch & Co. analyst said Countrywide Financial Corp., the biggest U.S. mortgage lender, may have to file for bankruptcy. Credit-default swaps on Countrywide widened after Merrill Lynch analyst Kenneth Bruce raised the possibility that a loss of access to short-term loan markets could force Countrywide into bankruptcy. Contract prices for mortgage lender Residential Capital LLC and for home-loan insurer Radian Group Inc. are also trading as if investors see a high probability of default."

Bloomberg - "Goldman Fund Cuts Fees to Woo Investors After Loss" (8-15-07)

"Goldman Sachs Group Inc. waived fees to draw investors to its Global Equity Opportunities hedge fund after stock-market losses wiped out $1.4 billion of assets this month, according to a person with direct knowledge of the terms. New participants won't pay the 2 percent management charge and Goldman will cut its performance fee in half, said the person, who declined to be named because the information is private. The New York-based firm and investors including billionaire Maurice 'Hank' Greenberg agreed to put $3 billion in the fund earlier this week. Goldman spokesman Lucas van Praag confirmed the terms and declined to comment further."

Bloomberg - "KKR Unit May Lose $290 Million on Mortgage Bond Sales" (8-15-07)

"KKR Financial Holdings LLC shares fell 31 percent after the debt investor said it may lose as much as $290 million because of a decline in the value of mortgage- backed bonds it owns. The company, a unit of Henry Kravis's buyout firm Kohlberg Kravis Roberts & Co., sold $5.1 billion in loans at a net loss of $40 million and plans to sell its $5.8 billion in remaining residential mortgage-backed securities. Disposing of those assets may lead to a writedown of $200 million in equity and 'additional liabilities' of as much as $50 million, San Francisco-based KKR Financial said today in a statement."

Bloomberg - "U.S. Home Sales Slump to Four-Year Low, Prices Fall" (8-15-07)

"U.S. home sales slumped to a four-year low and prices fell in a third of U.S. cities as turmoil in the mortgage market took its toll on housing, the National Association of Realtors said. Home sales, including single-family houses and condominiums, dropped in the second quarter to 5.91 million at an annualized pace, the lowest since the second quarter of 2003, led by declines in Florida and Nevada, the Chicago-based real estate trade group said in a report today. The median price for a single-family home fell in 50 of 149 metropolitan areas studied by the association."

Financial Times - "US banks refuse to accept subprime collateral" (8-15-07)

"US banks caught in the credit market upheaval have started refusing to lend money against hedge funds' subprime credit portfolios. Hedge funds said several banks in recent days had cut off lending to funds that use credit portfolios, including mortgages, collateralised debt obligations and subprime securities, as collateral. That leaves the highly leveraged funds heavily reliant on their prime brokers for borrowing."

Bloomberg - "At Mortgage Banks, `Going Concerns,' Going, Gone: Jonathan Weil" (8-15-07)

"You think your job is tough? Think about the poor schlimazels from Deloitte & Touche LLP who blessed the books at American Home Mortgage Investment Corp., mere months before it went belly up. The Deloitte accountants faced a crucial decision as they finished their audit work in March. Deloitte could resign and walk away. The firm could qualify its audit opinion by saying there was 'substantial doubt' about American Home's ability to continue as a 'going concern' through the end of the year -- as many short sellers already had concluded. Or it could give the company a clean opinion, expressing no doubt, which is what Deloitte did."

Los Angeles Times - "Southland home sales hit 12-year low" (8-15-07)

"Would-be home buyers in Southern California continued to sit on the sidelines last month, driving down home sales to their slowest pace in 12 years and pushing down prices in the region's less-expensive neighborhoods, data released Tuesday showed. Yet even as home sales fell 27% regionwide, the median price of all homes sold in the Southland's six counties rose 3.7%, to $505,000, in July compared to a year ago, thanks to more robust sales at the upper end of the market, according to real estate research firm DataQuick Information Systems."