Household net worth increased in the first quarter of 2012 due to gains in the stock market, while household debt declined, according to the U.S. Flow of Funds report released by the Federal Reserve. Household net worth, which is the difference between the value of a household's assets and liabilities, increased by about $2.8 trillion to $62.9 trillion compared to the previous quarter, the Fed reported. The value of real estate assets also improved, increasing by $425 billion, or 2.3 percent due to a 2.4 percent gain in home prices, according to analysis from IHS Global Insight.

Reperforming and nonperforming loans decreased $6.1 billion to $528.6 billion in May compared to the previous month of April for private label mortgage backed securities (MBS), according to a report from Amherst Securities Group. The decrease came after a reduction of $6.4 billion in the non-performing bucket and a $0.3 billion growth in the re-performing bucket, reflecting elevated liquidations and a slowdown of new defaults, Amherst stated in the report.

As the employment situation continues to raise concerns, fixed rates fell even lower, slipping yet again to new record-lows, according to a survey from Freddie Mac released Thursday. The 30-year fixed-rate mortgage averaged 3.67 percent (0.7 point) for the week ending June 7, falling from last week's average of 3.75 percent. The 15-year fixed rate declined even further below 3 percent to 2.94 percent (0.7 point), down from last week's 2.97 percent.

As recent data provide reasons to be both positive and worried about the economy, restrained optimism seems to be the phrase to describe how the public should respond to current economic indicators. Wednesday's release of the Beige Book revealed economic outlooks remain positive, but contacts were slightly more guarded in their optimism, while the Obama administration's Housing Scorecard relayed a similar sentiment. The scorecard provides an overview of the state of the market based on reports published within the public and private sectors.

Purchasing foreclosures also means discounts, but with the markdown is the price of repairs. According to RealtyTrac, foreclosures or REOs sold at an average discount of 27 percent compared to non-distressed properties in the first quarter of 2012. Through an FHA 203(k) loan, potential buyers who want to purchase a discounted foreclosure but don't have cash for the repairs may find a way to receive financing.

Congress has already approved of raising Fannie Mae and Freddie Mac guarantee fees to support non-housing related initiatives once before. Now, lawmakers are contemplating the use of GSE guarantee fees to fund student loan relief. In response to this, officials from Nationwide Title Clearing sent a release asking Congress not to raid the real estate piggy bank, stating an increase will lead to higher interest rates.

The Community Mortgage Lenders of America (CMLA) released a white paper outlining its policy suggestions for the future of Fannie Mae and Freddie Mac. Shrinking the GSEs role in the secondary market to 30-35 percent and preventing them from securitizing or investing into risky mortgages were among the ideas the trade group endorses. Still, the CMLA said it wants to see the GSEs remain intact due to uncertainty in the markets and to ensure further destabilization does not occur.

Asking prices fell flat in May after three consecutive monthly increases while also decreasing from the year before, according to reports from Trulia. Asking prices on homes for sale were unchanged in May on a seasonally adjusted basis and fell by 0.2 percent year-over-year. However, when excluding foreclosures, asking prices actually rose 1 percent on a yearly basis, while foreclosure prices dropped 5.8 percent over the same time period.

For the first time since August 2010, home prices rose on both a quarterly and yearly basis, according to the May 2012 Home Data Index (HDI) report released by Clear Capital. Quarter-over-quarter, prices appreciated 0.4 percent, the first quarterly increase since November 2011. Year-over-year, prices rose by 0.1 percent, according to the index. The increases were attributed to stronger regional growth in the West, Northeast, and South, as well as a rise in REO-only prices.

Settlement monitor Joseph Smith announced a partnership Monday to work with BDO Consulting as the primary professional firm. BDO, a division of BDO USA, LLP, will join Smith and his team for three and a half years to oversee the implementation of the settlement involving 49 states, state and federal officials, and the five largest banks - Bank of America, JPMorgan Chase, Wells Fargo, Citi, and Ally.