Fannie Mae forecasts 10% drop in 2006 home sales

The number of homes changing hands in 2006 could decline by up to 10 percent, and mortgage originations could fall by 18 percent to $2.41 trillion, the top economists at Fannie Mae project.

In a report issued Wednesday, Fannie Mae economists David Berson and Molly Boesel said a weakening investor demand and a lack of affordability could bring sales volume down 8 percent to 10 percent this year, to 7.61 million units.  more...

Bernanke raises hopes of pause in interest-rate hikes

Federal Reserve Chairman Ben Bernanke told the Senate Banking Committee today that a slowdown in the economy that would keep inflation in check seems to be underway, raising hopes on Wall Street that the Fed will keep short-term interest rates at 5.25 percent.

Bernanke's delivered his Semiannual Monetary Policy Report to Congress on the same day the June consumer price index report was released, showing a 0.3 percent increase in the core inflation rate.  more...

Sotheby's grows real estate franchise

Sotheby's International Realty is growing its luxury real estate network with master franchise agreements to expand into 16 additional countries and territories, the company said.

Since September 2004, more than 100 companies across the globe have signed multiyear franchise agreements to operate Sotheby's International Realty offices.

The Sotheby's International Realty luxury network currently has more than 325 offices located in 18 countries including Anguilla, Australia, Bahamas, Bermuda, Canada, Cayman Islands, Cos  more...

Profits fall at real estate loan insurer

Private mortgage insurance provider MGIC Investment Corp. on Tuesday reported its second-quarter net income dropped 14 percent from a year ago, falling from $174.4 million in second-quarter 2005 to $149.8 million in second-quarter 2006.

Diluted earnings per share were $1.74 for the quarter ending June 30, 2006, a 7 percent drop from $1.87 reported for the same quarter a year ago.

Net income for the first six months of 2006 was $313.3 million, down 12 percent from $356.4 million for the same period last year.  more...

Realogy, Wyndham stocks to begin trading today

"When issued" stocks in Cendant Corp. spin-offs Realogy Corp. and Wyndham Worldwide Corp. are expected to begin trading on the New York Stock Exchange today, although Cendant shareholders won't be issued their shares in the companies until July 31.

Cendant's board approved the spin-offs of its real estate and hospitality units July 13.  more...

Housing affordability erodes builder confidence

Builder confidence in the single-family market slipped three more notches to 39 in July, as interest rates and housing affordability continued to worry builders, according to an industry index released Tuesday.

The NAHB/Wells Fargo Housing Market Index (HMI), which is derived from a monthly survey of builders that gauges builder perceptions of current and future home sales and traffic of prospective buyers, sank for the fifth consecutive month amid softening market conditions.  more...

Housing starts, permits drop in June

The rate of privately owned housing starts dropped about 5.3 percent in June compared to May and fell about 11 percent compared to June 2005, the U.S. Census Bureau and Department of Housing and Urban Development announced today.

Single-family housing starts dropped about 6.5 percent from May to June to a seasonally adjusted annual rate of about 1.49 million, a decline of about 13.8 percent compared to the June 2005 rate.  more...

Real estate loan applications fall

Despite a dip in mortgage rates, overall home loan applications fell 4.6 percent last week on a seasonally adjusted basis from the week before, the Mortgage Bankers Association reported today.

The seasonally adjusted purchase index decreased by 6.2 percent to 398.5 from 425 the previous week, and the refinance index decreased by 1.6 percent to 1,377.6 from 1,400.5 one week earlier.

The refinance share of mortgage activity increased to 35 percent of total applications from 34 percent the previous week.  more...

Overnight real estate rates barely budge

Long-term mortgage interest rates were mostly flat Tuesday, and the benchmark 10-year Treasury bond yield inched up to 5.13 percent.

The 30-year fixed-rate average crept up to 6.32 percent, and the 15-year fixed-rate held at 6.01 percent. The 1-year adjustable edged up to 5.47 percent.

The 30-year Treasury bond yield rose to 5.17 percent.

Rates are current as of 7:15 p.m. Eastern Standard Time.

Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states.  more...