Mortgage finance companies Fannie Mae and Freddie Mac are suspending foreclosures during the holiday season.

The head of the Federal Deposit Insurance Corp said Thursday she is optimistic the agency will be able to obtain money from the $700 billion bailout fund to launch its proposed home-loan modification program quickly.

Stocks plunged to a more than five-year low amid worries about the fate of the auto industry — and the economy — as a bailout for the sector grows increasingly unlikely.

Stocks declined Tuesday amid worries about the fate of the auto industry as a bailout grows increasingly unlikely.

Stocks opened mixed Tuesday as a pop in commodities and sharp drop in consumer prices briefly offset worries that Congress won't bail out auto makers.

Construction starts on new US homes fell to a record low in October, as did new applications for building permits, signaling that the national housing downturn may extend well into the future.

Applications for U.S. home mortgages declined last week, with loans for purchases of single-family homes falling to their lowest level in nearly eight years, an industry group said on Wednesday.

Stock index futures pared their losses Tuesday after a report showed consumer prices posted their biggest decline in 61 years.

Pervasive fears of job loss, financial market upheaval and recession hammered U.S. home builder sentiment to a record low in November, the National Association of Home Builders said on Tuesday.

Existing U.S. single-family homes prices in metro areas fell 9.0 percent in the third quarter compared with the same period last year, the National Association of Realtors said on Tuesday.

The liquidity needs of troubled property financier Hypo Real Estate will probably exceed the 50 billion euro ($63.4 billion) package arranged by the government, banks and insurers to prop up the bank by the end of 2008, Hypo Real said on Monday.

The Federal Deposit Insurance Corp Friday unveiled a plan to prevent about 1.5 million foreclosures by promising to share any losses with mortgage companies that agree to refinance certain home loans.

Delinquencies on U.S. subprime mortgage securities, auto loans and credit cards are soaring as job losses engulf borrowers.

The Treasury Department made a big mistake with the initial plan to price toxic assets in the financial system and is now bungling the recapitalization of banks, Eric Hovde, CEO and portfolio manager at Hovde Capital Advisors, said Thursday.

U.S. mortgage applications rose last week, recovering from an almost 8-year low, as potential borrowers took advantage of a sharp drop in interest rates, an industry group said on Thursday.