Merrill Lynch writes down $4.5 billion in CDOs, subprime loans

Merrill Lynch & Co. said it will post third-quarter losses of up to 50 cents per share as it writes down by $4.5 billion the value of collateralized debt obligations and subprime mortgages.

The write-downs "reflect in part significant dislocations in the highest-rated tranches of these securities which were affected by an unprecedented move in credit spreads and a lack of market liquidity in these securities," the investment bank said in a press release.  more...

Home prices slide in Sacramento, San Diego, D.C.

Home prices fell in two thirds of the metro areas reported in a monthly home-price index released this week by real estate research firm Radar Logic.

Sixteen of 24 metro areas in Radar Logic's newly launched monthly housing market report experienced price declines during July compared to July 2006, with the most severe price drops in Sacramento, Calif., San Diego, Calif., and Washington, D.C.

The index is based on a 28-day aggregated value of a daily index, known as the Residential Property Index, or RPX, that is based on  more...

House passes foreclosure tax-break bill

A bill that would give homeowners facing foreclosure a tax break if their lender forgives part of their debt -- and make up for the lost revenue by raising taxes on sales of some second homes -- passed the House of Representatives Thursday.

HR 3648, the Mortgage Forgiveness Debt Relief Act of 2007, would also extend the deduction for private mortgage insurance to 2014, helping home buyers avoid high-interest piggyback loans.  more...

CEOs less bullish on economy in Q3

A key indicator that measures chief executives' confidence in the economy dropped again in the third quarter of 2007, as current business conditions continued to cast a dreary mood across many industries, The Conference Board reported today.

The Conference Board Measure of CEO Confidence, which had declined to 45 in the second quarter of 2007, edged down to 44 in the third quarter, according to a survey of nearly 100 business leaders in a wide range of industries.  more...

Real estate rates unchanged overnight

Long-term mortgage interest rates were flat Thursday, and the benchmark 10-year Treasury bond yield dropped to 4.51 percent.

The 30-year fixed-rate average held at 6.05 percent, and the 15-year fixed rate remained at 5.68 percent. The 1-year adjustable stayed at 5.71 percent.

The 30-year Treasury bond yield was down at 4.76 percent.

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