Some housing bubble reports from Wall Street and Washington. "The National Association of Realtors said Monday the pending home sales index fell 1.7% in October after a 1.1% drop in September. The index is down 13.2% in the past year."

"'It's important to focus on where the housing market is now, it appears to be stabilizing, and comparisons with an unsustainable boom mask the fact that home sales remain historically high,' David Lereah, chief economist for the trade association, said in a statement."

"'In addition, a temporary correction in prices distracts from the fact that it is primarily the number of home sales that affects the economy, and the number for this year will be the third highest on record,' he said."

"Regionally, the PHSI in the Midwest was 15.4 percent below a year ago. The index in the South was 9.3 percent below October 2005. In the Northeast, the index was 13.5 percent lower than a year earlier. The index in the West was 17.4 percent below October 2005."

From MarketWatch. "'The existing home market needs to find a bottom for the new home market to rise again,' according to Alex Barron, a housing sector analyst at JMP Securities."

"'Given that the majority of people who buy homes from the public builders, including move-up, luxury and active-adult buyers, are current homeowners who need to sell their home before they close on their purchase of a new home, we believe the existing home market needs to find a bottom first in order for the new home market to find its footing again,' Barron wrote."

"According to the analyst, much of the problem is that many sellers continue to set unrealistically high prices, while many buyers lack confidence."

From Bloomberg. "Cemex SA, the world's third-largest cement maker, said its $11.7 billion takeover offer for Rinker Group Ltd. was adequate, rejecting claims from the Australian building materials maker the bid may be 36 percent too low."

"When it rebuffed the bid last week, Rinker didn't adequately explain the outlook of its U.S. business as a housing bubble in Florida, its biggest market, is bursting, Cemex said. The valuation by its adviser was based on 'unrealistic multiples and unjustified premiums,' the cement maker said."

From Reuters. "The U.S. Treasury and key lawmakers in the U.S. House of Representatives have drafted a compromise plan in the long-delayed bid to reform oversight of mortgage finance giants Fannie Mae, and Freddie Mac."

"The compromise language that was circulating Friday states the new regulator 'shall monitor the portfolio of each enterprise' and 'may, by order, require' the companies to shed some of their investments."

National Mortgage News. "Fannie Mae and Freddie Mac may face restrictions on purchases of interest-only and payment-option mortgages if the Office of Federal Housing Enterprise Oversight decides to move ahead and issue nontraditional mortgage guidance for the two government-sponsored enterprises."

"According to the new 3Q issue of the Quarterly Data Report, loan production fell 11% in the third quarter. And according to the Alternative Products Quarterly Data Report, jumbo loan production fell 21%."