Housing

Home prices rose 8.8% in December on a year-over-year basis, as the dearth of available homes forced prices up, according to Redfin.

MGIC Investment Corp. posted net income of $102.4 million in the fourth quarter, a gain of 36% from the $75.1 million it earned in the same period in 2014.

The average interest rate on the 30-year fixed rate mortgage rates fell this week to a three-month low, as investors exited stocks and commodities for the safety of government bonds.

Default rates on various types of consumer loans were down 14 basis points in December on a year-over-year basis but were unchanged from November, according to Standard & Poor's and Experian.

Mortgage applications leapt 9% on a seasonally adjusted basis for the week ending Jan. 15 compared to one week earlier, according to the Mortgage Bankers Association.

New-home construction in the U.S. unexpectedly fell in December, indicating the industry lost some momentum entering 2016.

In one corner are groups like the Community Home Lenders Association and the major credit union groups, which are hoping the administration will further cut premiums after a reduction a year ago. On the other are MBA and ICBA, which argue a cut now would be too soon.

Activist investor Carl Icahn, who's pushing American International Group Inc. Chief Executive Officer Peter Hancock to shrink the insurer and boost returns, said the CEO must offer "a drastic strategic shift" at a presentation scheduled for next week. Icahn's plan includes splitting AIG into three units, one being United Guaranty Corp., a private mortgage insurer.

Confidence among U.S. homebuilders was unchanged at the start of year, indicating the residential real estate market was sustaining the steady progress made in 2015.

Fourth-quarter mortgage banking income at Wells Fargo & Co. totaled $1.7 billion, up 10% from the $1.5 billion recorded in the fourth quarter of 2014, as the gain on originations and sales increased by $145 million year-over-year.