One of the nation's last sources of zero down financing for home loans appears to be making a comeback.

The nascent US economic recovery would be halted in 2011 if Congress fails to extend the Bush tax cuts for the wealthiest Americans, analysts at Deutsche Bank said.

Yields on Fannie Mae and Freddie Mac mortgage securities that guide U.S. home-loan rates reached record lows relative to 10-year Treasuries as investors search for higher returns amid limited by borrowers.

A roundup of economic news from around the Web.

Goldman Sachs Group Inc. and Citigroup Inc. are attempting to sell the fourth offering of securities backed by commercial mortgages this year as investor sentiment rises toward everything from company bonds to loans.

Foreclosure Hot Spots Improve, but Trouble Seen Ahead

California struck gold, receiving the biggest chunk of a special $1.5 billion federal fund pie for programs that target struggling homeowners in states hardest hit by the housing crash.

Criticism of the Obama Administration's mortgage bailout, the Home Affordable Modification Program, is reaching a fever pitch, and I know this because, among other things, the Administration itself appears to be mounting a defense.

CR Note: This is from housing economist Tom Lawler. Meritage Homes, the 11th largest US home builder in 2009, that net home orders in the quarter ended 6/30/10 totaled 900, down 21.5% from the comparable quarter of 2009. Home deliveries, in contrast, jumped by 35.6% from a year ago to 1,207, reflecting buyers’ (and the builders) rush to close prior to the expected 6/30 closing date deadline for the federal home buyer tax credit. Compared to the previous quarter, net orders fell 15.4% while home closings surged by 49.4%. As a result, the company order backlog as of 6/30/10 fell to 1,044, down 22.7% from 3/31/10 and down 34.4% from a year ago. Company officials were reportedly “surprised” by the extent of the post-tax-credit slowdown, and some analysts were a little spooked by the company’s move to increase active communities this year in California, Arizona, and Florida, while reducing its footprint in “lower-margin” Texas markets, as well as its recent acquisitions of land/lots. Meritage noted that margins on its newer communities have been higher than on older communities, in part because it purchased “deeply discounted” lots – especially in CA/AZ/FL. The company also said that it had “reduced our incentives while maintaining prices,” though whether it can do so in the post-tax-credit world remained unclear. Meritage, btw, appears to be one of those builders cited in yesterday’s WSJ article that may increase building in troubled markets that have not fully recovered yet because of land/lot acquisitions. (“,”, July 27th, p. A2. This article, by the way, vastly overstates the potential for an increase in housing production related to SOME builders buying land/lots, often mainly either from other troubled builders or from banks. It also ignored surveys of builders indicating that most have dramatically cut their building production plans following the post-tax-credit plunge in sales, and ignored the sharp drop in SF building permits in May and June!!!) M/I Homes, the 16th...