Fed slashes short-term rates again

In an indication that the Federal Reserve sees an increased risk of recession, a committee that sets monetary policy cut two key short-term interest rates today by half a percentage point.

The Federal Open Market Committee's decision to slash its target for the federal funds overnight rate to 3 percent, and the discount rate to 3.5 percent, was not unexpected.  more...

U.S. home-ownership rate continues to slip

The home-ownership rate continues to retreat from record highs, as the number of owner-occupied homes declined in a year when the nation added 2 million new housing units.

A new Census Bureau report shows the home-ownership rate slipped to 67.8 percent during the fourth quarter of 2007, down a full percentage point from 68.9 percent a year ago.  more...

Nightly real estate rates rise

Long-term mortgage interest rates inched up Tuesday, and the benchmark 10-year Treasury bond yield rose to 3.68 percent.

The 30-year fixed-rate average edged up to 5.47 percent, and the 15-year fixed rate gained to 4.96 percent. The 1-year adjustable rate rose to 5.14 percent.

The 30-year Treasury bond yield was up at 4.36 percent.

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

Refi apps jump 22%

Despite a drop in home-purchase activity, overall mortgage application volume posted strong growth last week, the Mortgage Bankers Association reported today.

The group's market composite index, a measure of home loan application volume, rose 7.5 percent last week on a seasonally adjusted basis from a week earlier, boosted by a surge in refinance applications.

The index that tracks refinance applications jumped 22.1 percent from mid-January, pushing its share of mortgage activity from 66 percent to 73 percent, while the purchase-loan index tumbled 17.7 percent, MBA reported.  more...

FBI says 14 mortgage financiers under investigation

The FBI is reportedly investigating possible accounting fraud and insider trading at 14 companies in the financial services, mortgage lending and investment banking industry.

The investigation of the companies, which were not identified, began in the spring of 2007 and is being conducted jointly with the Securities and Exchange Commission, the Associated Press reported. The SEC is believed to be conducting roughly three dozen investigations related to publicly traded companies in the housing and mortgage lending business, AP said.  more...

House OK's temporary increase in loan limits

A $150 billion economic stimulus package overwhelmingly approved by the House of Representatives Tuesday would raise the conforming loan limit and the upper threshold for FHA loan guarantee programs to as much as $729,750 in high-cost areas -- but only until the end of 2008.  more...