I recently watched a segment on the news about builders dropping prices in order to immediately sell off their housing inventory. Obviously their carrying/holding costs are high and it makes sense for them to sell now at a reduced price rather than holding out for the possibility of a higher selling price that will be offset by months of holding costs.  Hovnanian Enterprises announced Monday that its "Deal of the Century" three day sales promotion led to 2,100 home sales.

Good news on the mortgage loan disclosure front.  When applying for a home loan, buyers receive voluminous disclosures and they are VERY difficult to understand especially if the buyer is not obtaining a standard fixed rate loan.  The Federal Trade Commission has warned more than 200 companies about potentially deceptive mortgage advertisements that could give borrowers a false impression of the cost of home loans. Some ads promoted only incredibly low monthly payments but failed to disclose adequately the terms of repayment, including payment increases and a final balloon payment," the FTC said in announcing the issuance of warning
Letters.
 

More good news, Mortgage application volume increased 2.4 percent for the week ending Sept. 14, according to trade group the Mortgage Bankers Association. Refinance volume increased 4.6 percent, while purchase volume rose 0.9 percent.  Let's hope that more homeowners with risky mortgages can "refinance" themselves out of terrible loans.