Bloomberg – “Banning ‘Naked’ Default Swaps May Raise Corporate Funding Costs” (7-24-09)

“Credit-default swaps were used by American International Group Inc. to bet on residential mortgage debt, driving the insurer to the brink of bankruptcy when it couldn’t come up with collateral as prices plunged, and regulators have blamed the market for exacerbating the financial crisis.”

Bloomberg – “Lennar Signals Fleeting Homebuilder Rally as Buyers Go Missing” (7-24-09)

“The largest homebuilders are mothballing communities across the U.S., signaling they have little confidence that a market rebound is imminent. Builder shares have rallied 76 percent from the lows in November. They may fall more than 20 percent in the next four months unless home prices and property writedowns stabilize, said Anna Torma, a former Merrill Lynch & Co. analyst who tracks the industry at Soleil Securities Corp. in New York.”

Bloomberg – “U.S. Home Vacancies Hit 18.7 Million on Bank Seizures” (7-24-09)

“More than 18.7 million homes stood empty in the U.S. during the second quarter as the steepest recession in 50 years sapped demand for real estate and banks seized properties from delinquent borrowers. The number of vacant properties, including foreclosures, residences for sale and vacation homes, was little changed from 18.6 million a year earlier, the U.S. Census Bureau said in a report today. The quarterly homeownership rate was 67.3 percent, seasonally adjusted.”

Orange County Register – “O.C. median home price $50,000 off bottom” (7-24-09)

“$420,000 median selling price that is -11.6% vs. a year ago and -35% below June 2007’s peak of $645,000. Prices have been falling on a year-over-year basis since Sept. 2007 with the worst at -31.5% in August 2008.”

Reuters – “CIT amends debt offer to attract creditors” (7-24-09)

“The New York-based lender to thousands of small and mid-sized companies estimates that it lost more than $1.5 billion in the second quarter due to bad loans and writedowns.”

Realty Times – “Fixed-Rate Mortgage Rates Rise This Week” (7-24-09)

“Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.20 percent with an average 0.7 point for the week ending July 23, 2009, up from last week when it averaged 5.14 percent. Last year at this time, the 30-year FRM averaged 6.63 percent.”

Los Angeles – “Senate approves California budget, but Assembly still debating the plan” (7-24-09)

“The state Senate this morning approved a budget package that would close the state’s $26.3 billion deficit, after working through a grueling all-night session. But lawmakers in the Assembly had yet to take up some of the most controversial portions of the plan.”