Although delinquencies and foreclosures are still low by historic standards, there is increasing evidence that subprime borrowers are getting into more trouble as rates reset upwards. Housing counselors are helping people like Shirley Bird, 52, a janitor at a Chicago Police Department precinct, refinance her 12 percent variable loan with a 8 percent fixed-rate mortgage.
Subprime Loans Going From Boon to Housing Bane [NY Times]

Official housing prices are not painting an accurate picture of the market, especially in formerly hot markets like Naples, Florida where a recent auction showed prices 25 percent below where they were a year ago. The big problem with the national stats? They don’t capture all the houses that are sitting on the market not moving because sellers won’t drop their prices.
The Hidden Truth About Home Prices [NY Times]

City Council Speaker Christine Quinn and Mayor Bloomberg last night settled on a tax-credit program that expands the neighborhoods where developers can get tax credits for building affordable apartments. Quinn will release the full details of the plan to the city council today. Bloomberg said the deal “”strikes the right balance towards maintaining a strong housing market while also providing increased funding for affordable housing.”
Deal on Housing Credits [NY Post]

“Lately, in our experience, not many people have been interested in Williamsburg,” says Shana Altstaetter, director of operations at HH Realty Group. “They’re more interested in areas farther out — Clinton Hill and Fort Greene.” [Metro]