The complex world of asset-backed securities may be a bit of a blur for the average investor. But the credit crunch that mushroomed from this market will buffet consumers well into 2008, analysts predict.
U.S. residential foreclosure filings nearly doubled last quarter from a year earlier, and appear set to increase into 2008, a report said on Thursday.
Over 200,000 troubled borrowers will receive a letter from mortgage servicers advising them to seek new loan terms before they face foreclosure under a plan announced on Wednesday by US Treasury Secretary Henry Paulson.
The lowest 30-year mortgage rates since early May spurred a refinancing wave that pushed total mortgage applications higher last week despite a small drop in demand for loans to buy homes, an industry trade group said on Wednesday.
The decline in prices of existing U.S. single-family homes accelerated in August and fell at their fastest pace since 1991, according to the Standard & Poor's/Case Shiller national home price index.
The chief executive of U.S. home builder KB Home said home prices in California could fall another 10 percent to 15 percent in the next 18 months.
The subprime fall-out continues to claim more victims. Merrill's came as a blow - and in what is now becoming predictable for financial companies trying to get ahead of the news agenda - UBS rushed out 24hrs early the bad news on exposure and trading outlook.
The latest warning by UBS that it may face more writedowns, as well as last week's announcement by Merrill Lynch that it would have to write down $8.4 billion, show that the weakness in the financial sector is set to continue, analysts told CNBC Monday.
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.
That Lehman report was right. These companies are in trouble.Investing can be confusing. Luckily, Cramer has mapped out some road rules for all you Home Gamers trying to navigate the jungle that is Wall Street. Think of it as "Mad Money 101" –- some fundamental advice to keep in mind as you play the market. Whether you're a first time investor or a seasoned financier, it's always good to remember the basics.
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.