This Week’s Real Estate News: October 29 to November 4

Federal Reserve lowered Federal Funds Rate to 4.5%, citing concerns about weakness in the housing market. Statement also stated that it is also worried about inflation. 10/31/2007 (CNNmoney.com)

U.S. home prices down for 8th consecutive month; index of 10 large U.S. cties shows a price drop of 5% in August, the largest since 1991. 10/31/2007 (AP)

Foreclosure filings rise with more coming as interest rates jump on a record number of adjustable mortgages. 11/1/2007 (CNNmoney.com)

Mortgage rates fall to near a 6-month low –Fixed 30-year rate slips to 6.26% on weak consumer confidence and other economic worries, per Freddie Mac. 11/1/2007 (CNNmoney.com)

Mortgage applications surge as refinance volume drives 3.8% overall growth, according to the Mortgage Banker’s Association’s weekly application survey. 10/31/2007 (AP)

October federal jobs report is more than double of what was expected with a 166,000-job gain; unemployment remains steady at 4.7%. Some economists questioned the validity of gains in this report, which is subject to further revision. 11/2/2007 (CNNmoney.com)

Experts predict the wildfires in Southern California will further add to the region’s slowdown in housing sales, as buyers shy away from listings in and around burn areas. 11/2/2007 (Reuters)

Members of Congress applied more pressure on the Bush administration today to ramp up efforts to slow down foreclosure rates. 11/2/2007 (AP)

Home prices in Los Angeles and Orange counties saw steeper declines in August than most other major metropolitan areas. 10/31/2007 (LA Times)
Regulators and consumer advocates worry too many wildfire victims don’t have adequate insurance to rebuild. 11/1/2007 (USA Today)

U.S. Treasury Secretary Henry Paulson said Tuesday the U.S. economy is strong enough to overcome the housing downturn but added the recovery process could take longer than expected. 10/30/2007 (AP)
Mortgage lenders struggling to remain profitable in the wake of the mortgage meltdown are applying a heavy dose of marketing aimed at those with good credit and solid home equity. 10/29/2007 (LA Times)

Residential Construction declines 1.4% 11/1/2007 (CAR)

Consumer Confidence declined for the third straight month in October, indicating continued consumer skepticism about the economy, fueled largely by the housing and mortgage lending crisis. The Consumer Confidence Index now stands at 95.6, compared with 99.5 in September. 11/1/2007 (CAR)

Sources: California Association of REALTORS(R), Associated Press, LA Times, Reuters, CNNmoney.com, KNX-AM Los Angeles