2008 not so great, says builders' economist

Single-family housing starts are expected to plummet 29.3 percent this year compared to 2006, and to drop another 23.6 percent in 2008, National Association of Home Builders chief economist David Seiders said in a forecast report Thursday.  more...

Overnight real estate rates in 3-day drop

Long-term mortgage interest rates were down again Thursday, and the benchmark 10-year Treasury bond yield rose to 4.05 percent.

The 30-year fixed-rate average sank to 5.74 percent, and the 15-year fixed rate dipped to 5.3 percent. The 1-year adjustable rate was down at 5.49 percent.

The 30-year Treasury bond yield edged up to 4.48 percent.

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

Mortgage brokers lose subprime share to retail, Internet lenders

Retail lenders like banks and direct Internet operations picked up a larger share of subprime loan originations in the first half of 2007, according to a survey of subprime lenders by the Mortgage Bankers Association.

Retail lenders grew their market share of subprime first loans from 23 percent in the last half of 2006 to 36 percent in the first six months of 2007, the survey found.

While mortgage brokers still accounted for the majority of subprime loan originations -- 58 percent, measured by dollar volume -- that's down from 72 percent in the second half of 2006.  more...

Home sales sink at record levels in two California regions

The median home price in Southern California plunged 10.3 percent while sales fell 42.7 percent in November compared to the same month last year, real estate data company DataQuick Information Systems reported this week. Home sales in the San Francisco Bay Area dropped 36.2 percent from November 2006 to November 2007.  more...

SEC, OTS looking at WaMu lending practices

The Securities and Exchange Commission and the Office of Thrift Supervision are looking into allegations that Washington Mutual Inc. originated, securitized and sold mortgages that were made using inflated appraisals.

The allegations were made in a lawsuit filed against WaMu's appraiser by New York Attorney General Andrew Cuomo.  more...

Five banks commit $125M for New England refis

Five banks have committed $125 million to help New England homeowners with good payment histories refinance out of high-cost loans or avoid interest rate resets on adjustable-rate mortgages.

At least 38,000 borrowers in six New England states may be eligible for help under the program, but the initial funding pledged by Citizens Bank, Sovereign Bank, TD Banknorth, Webster Bank and Bank of America would only fund about 500 mortgages.  more...