Free Republic

WASHINGTON—The number of Americans signing contracts to buy previously owned homes fell in July for the second consecutive month, the latest sign that higher mortgage rates are starting to drag down the housing recovery. The National Association of Realtors said Wednesday that its seasonally adjusted index for pending sales of existing homes fell to 109.5 in July, 1.3% lower than the June reading and a slightly steeper decline than the 1% drop forecast by economists. The July index was 6.7% higher than its level a year earlier. Because of the way pending home sales are tallied—at the signing of a...

Countrywide, in its presentation yesterday in San Francisco, made some fascinating arguments about what's causing the foreclosure crisis. Countrywide CEO Angelo Mozilo "criticized media coverage of the mortgage meltdown several times Tuesday, saying reporters incorrectly blamed 'aggressive lending and exotic reset products' for rising foreclosures." What's driving foreclosures? Countrywide's breakdown -- based on information from its servicing portfolio -- when "cause of foreclosure" is known (80.3%), the breakdown is as follows: --Curtailment of income: 58.3% --Illness/Medical: 13.2% --Divorce: 8.4% --Investment Prop./Unable to sell: 6.1% --Low regard for property ownership: 5.5% --Death: 3.6% --Payment adjustment: 1.4% --Other: 3.5% We find this...

<p>On Wall Street, Freddie Mac's new chief executive, Gregory Parseghian, won quick praise as a financial pro who can restore credibility to the shaken mortgage behemoth.</p> <p>But it may well be in Washington, D.C., where the fate of Mr. Parseghian -- and of Freddie Mac -- is ultimately decided.</p>