Housing Market, Real Estate | featured news

An index measuring the number of Americans who signed contracts to buy homes in October jumped to nearly its highest level in almost six years.

New single-family home sales fell slightly in October and the prior month's pace of sales was revised sharply lower, casting a small shadow over what has been one of the brighter spots in the U.S. economy.

A housing comeback is now underway; that much is clear. Adding to a steady drumbeat of positive data for the sector, new data on Tuesday showed a surprising 3.6 percent gain in housing starts in October, which came on the back of a 15.1 percent rise in September.

U.S. builders started construction last month on the most single-family homes and apartments since July 2008, more evidence that the housing recovery is gaining momentum.

Among first-lien mortgages that received a principal reduction, borrowers had their loan balances cut by an average of $117,000, according to the independent monitor established to ensure that banks were meeting the terms of a settlement agreed to in March.

Home resales rose in October and a gauge of homebuilder sentiment climbed to a six-year high in November, a sign slow improvements in the labor market are helping the housing sector recovery gain traction.

The Federal Housing Administration, which has played a crucial role in stabilizing the housing market, said it ended September with $16.3 billion in projected losses -- a possible prelude to a taxpayer bailout.

The improving housing market is "far from being out of the woods," Federal Reserve Chairman Ben Bernanke said on Thursday, arguing that overly tight lending standards are part of the problem.

The housing rebound stems from more people chasing fewer homes. Interest rates remain near record lows, luring buyers. And investors with cash have poured into the market.

...Critics worry that the FHA is foolishly allowing marginal buyers to get loans just three years after foreclosure with as little as 3.5% down. What's more, the agency doesn't even track how many rebound borrowers it backs. Exactly how much money is hemorrhaging from the agency could be revealed Thursday, when the agency files a self-evaluation report to Congress. Analysts say the FHA could request a bailout from the U.S. Treasury for the first time in its history.