In The News...

New Home Sales rose to a seasonally adjusted annual rate of 515,000 in July, a 2.4% increase, but below the consensus estimate of 523,000. However, a steep revision lowering June's sales to 503,000 from a previously reported 530,000 homes resulted in a weaker report. A bright spot for housing was a reduction in unsold inventory to 416,000 homes from 439,000 in June, a decrease of 5.2%. This leaves a 10.1 month supply of homes, down from 10.7 months supply in June. Median homes prices slid 6.3% to $230,700 from the year ago period.

Shares of Freddie Mac and Fannie Mae jumped on Monday and are following through today with additional lofty gains after Freddie completed a $2 billion debt sale and a Wall Street analyst said a government bailout of the mortgage finance giants may not be inevitable. Freddie Mac had to sweeten the terms of the offer to lure buyers of the debt.

The high price of gas has cut down on the number of fatal accidents, according to the Transportation Research Institute at the University of Michigan. The institute's study, which covers 12 months ending in April, found that as gas prices rose, driving and fatalities declined. The surprise, said Professor Michael Sivak, author of the study, was the huge decline in fatalities in March and April as gasoline prices surged above $3.20 a gallon as reported by USA Today.

Brought to you, courtesy of The Mortgage Market Guide