Home Front - Following The Subprime Fallout

Significant losses on home loans made before this year have left the Federal Housing Administration with capital reserves below legally required levels, Housing and Urban Development Secretary Shaun Donovan announced on Thursday.

Stocks struggled Thursday as investors juggled a weak holiday outlook from Wal-Mart and a drop in jobless claims. Techs clawed higher, with huge gains in JDS Uniphase and AMD.

The Federal Housing Administration says its financial cushion has dipped to a dangerously low level but should remain above zero under "most economic scenarios."

The U.S. economy has improved, but a number of risks to growth remain and there is no near-term inflation threat, a top Fed official said Thursday.

The 30-year fixed-rate mortgage averaged 4.91 percent for the week ending November 12, 2009, down from last week when it averaged 4.98 percent, according to Freddie Mac.

Stocks wobbled Thursday as investors juggled a weak holiday outlook from Wal-Mart and a drop in jobless claims. Techs clawed higher after some big news out of the sector.

Refinancing drove total U.S. mortgage applications higher last week as fixed borrowing costs fell further below 5 percent, but home purchase demand sank to a nine-year low, an industry group said on Thursday.

Global stocks were mixed Thursday as gold hit a new higher above $1,120. Experts told CNBC that stocks in the U.S., Europe and China still look attractive.

U.S. futures remained slightly lower ahead of the open Thursday after Wal-Mart posted a 1.1 percent rise in third-quarter U.S. sales, compared to the same quarter last year, and U.S. mortgage applications pushed higher last week. 

Foreclosure rates fell for the third consecutive month in October, but remained sharply higher than a year ago, according to a new report, with analysts cautioning that the improvement was at best temporary.