Rising mortgage payments and tighter lending standards for refinancing amid the subprime credit crisis have dried up once-easy access to home equity loans for many middle-income borrowers -- so desperate borrowers are using credit cards to cover basics while trying to keep up with home payments.
Brookfield Homes reported third-quarter profit was $1.6 million, or 6 cents per share, down from $27.6 million, or $1.03 per share, in the year-ago quarter. But the Fairfax, Va.-based company said revenue was $120.8 million, compared with $175.5 million a year ago.
U.S. consumer sentiment fell further than expected in late October to its lowest in more than a year as concerns about the housing slump darkened the economic outlook, a survey released Friday showed.
The share of U.S. homes owned but empty rose to 2.7 percent at the end of September, the Census Bureau said Friday, in a signs of weakness in the housing sector.
Rumors that American International Group will take a large writedown were disputed Thursday in a report from CNBC's David Faber.
American billionaire investor Warren Buffett said Thursday he remains negative on prospects for the U.S. dollar and that problems in the U.S. subprime mortgage sector may continue to cause problems for some time.
Pulte Homes, the No. 3 U.S. home builder, posted a quarterly loss Wednesday, on charges topping $1 billion and said orders fell 37 percent.
The trouble in financial markets is not over yet and stocks, commercial property and credit markets in the rich world could suffer a further hit, the Bank of England said on Thursday.
U.S. sales of previously owned homes fell 8.0 percent in September to a record low 5.04 million unit pace amid troubles in the subprime mortgage and credit markets, the National Association of Realtors said Wednesday.
Merrill Lynch Chairman and CEO Stan O'Neal told shareholders that "mistakes" in subprime lending exposure led to $7.9 billion in write-downs for the third quarter.
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Countrywide Financial, the largest U.S. mortgage lender, offered to refinance or restructure up to $16 billion of adjustable-rate mortgages through the end of 2008.
Shares of home builders soared on Monday as a frenzy of short sellers bought stock to cover their positions, giving the overall housing stock index its greatest one-day gain in about five years.
Countrywide Financial should name an independent director to serve as chairman, and appoint a special committee to examine the largest U.S. mortgage lender's stock option grants and practices, a prominent shareholder said.
The liquidity squeeze which has affected the global financial markets in the past three months is not likely to cause a correction in the UK housing market, Peter Spencer, chief economic advisor for Ernst & Young's Item Club, told CNBC's "Squawk Box Europe" Monday.
The world's top banking lobby on Sunday accepted responsibility for the U.S. subprime lending crisis and launched a broad reform program designed to mend cracks in ailing credit markets.
Wachovia on Friday posted a 10 percent decline in quarterly profit, missing forecasts, amid $1.3 billion of write-downs at its investment banking unit. Also: All about Wachovia's $7 billion potential headache.
Bear Stearns is being investigated by Massachusetts securities regulators over whether the bank improperly traded with two in-house hedge funds that collapsed last summer, the Wall Street Journal reported on Friday.
Credit jitters edged higher as Bank of America missed earnings forecasts and Hershey said sales fell because worried vendors were reducing inventories.
Thornburg Mortgage said it lost more than $1 billion in the third quarter due to the fallout in the mortgage markets and elected not to pay a dividend to holders of common shares to conserve cash.