Residential construction spending includes remodeling, additions, and major replacements to owner occupied properties subsequent to completion of original building. It includes construction of additional housing units in existing residential structures, finishing of basements and attics, modernization of kitchens, bathrooms, etc. Also included are improvements outside of residential structures, such as the addition of swimming pools and garages, and replacement of major equipment items such as water heaters, furnaces and central air-conditioners. Maintenance and repair work is not included.

Standard & Poor's Case-Shiller Indices continue to show improvement in home prices, but the rate of increase has slowed and its publisher points to other indicators as "ominous" signals.

The Conservator of Fannie Mae and Freddie Mac has issued its first report on Fannie Mae and Freddie Mac. The data indicates that problems began when the GSEs lost market share but are now on the road to recovery thanks to tighter lending standards are better risk management practices.

The President of the Chicago Federal Reserve told an audience on Tuesday that financial literacy played a role in the mortgage meltdown, but suggested a behavioral approach to borrowers might be more effective than financial education.

"The volume of refi applications last week was up 26% over their level four weeks ago. Mortgage rates dropped to their lowest level in the survey, going back to 1990, as incoming data continue to indicate that economic growth has slowed...We are at a new 15 month high for the Refinance index. With rates this low, many borrowers who refinanced in the past two years may well have an incentive to refinance again, and this is likely increasing refi application activity."

Existing-home sales were sharply lower in July following expiration of the home buyer tax credit but home prices continued to gain, according to the National Association of Realtors®.

The Federal Home Finance Agency is proposing to restrict the GSEs and the FHLBanks from investing in or accepting as collateral mortgages on properties encumbered by private transfer fee covenants and are soliciting public comments.

Interesting...the MBA says mortgage rates actually rose last week. I have to disagree with that, mortgage rates did improve last week, but I understand why the MBA's survey is indicating mortgage rates rose: because they survey RETAIL lenders Because mortgage rates are at all-time lows, more and more consumers (not as many as last year) are coming down off their fences and applying for a refinance. This week the Refinance Index hit its highest mark since the week ending May 15, 2009. Refinance demand is driving activity in the mortgage market and lenders are operating near full-capacity. When this happens, lenders generally let loan pricing worsen to control the pace of new loan production and protect their pipeline from fallout risk. This is playing out right now in the primary mortgage market AT THE LARGE RETAIL LENDERS SPECIFICALLY. Besides potentially higher borrowing costs, consumers and loan officers should also notice longer "turn times" at lenders, which is basically the amount of time it takes to go from application to closing.