housingmarket

U.S. homebuilders are growing less pessimistic about the housing market, despite tighter lending standards that have slowed home sales. The National Association of Home Builders/Wells Fargo builder sentiment index rose four points to 25 in January. That's the highest level since June 2007. It's just the third time the index has been at 20 or above in two years.

The number of Americans who signed contracts to buy homes in November rose to the highest level in a year and a half. Normally, such a gain would suggest a turnaround for the depressed housing market. But a growing number of buyers are canceling their contracts at the last minute, making it a less reliable gauge.

U.S. home prices fell in most major cities for the second straight month, further evidence that the housing recovery will be bumpy and weigh on the broader economy in 2012. The Standard & Poor's/Case-Shiller index released Tuesday showed prices dropped in October from September in 19 of the 20 cities tracked.

Americans bought slightly more new homes in November, but 2011 will likely end up as the worst year for sales in history. The Commerce Department says new-home sales rose 1.6 percent last month to a seasonally adjusted annual rate of 315,000. That's less than half the 700,000 new homes that economists say should be sold to sustain a healthy housing market.

The number of Americans who bought previously occupied homes rose last month. But the National Association of Realtors says it overstated more than 3 million sales during and after the Great Recession, showing the housing market was weaker than previously thought.

A surge in apartment construction gave builders more work in November, but 2011 is still shaping up to be one of the worst years in history for homebuilders.

The average rate on the 30-year fixed mortgage hovered above its record low for a sixth straight week. But the super-low rates aren't providing a lift to the struggling housing market. Rates have been below 5 percent for all but two weeks this year. Yet this year could be the worst for home sales in 14 years.

There's never a dull moment on Wall Street, especially now when holiday shopping is under way. Let's go over some of the items that will help shape the week that lies ahead.

It has been a rough few years for homeowners, and an even worse time for real estate developers. But in a small encouraging sign, luxury homebuilder Toll Brothers is acquiring Seattle-based CamWest Development.

The Conference Board's Leading Economic Indicators Index rose 0.9% in October, outpacing increases in the previous two months and providing some grounds for hope of more robust economic growth to come.