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For 2011, investment purchases increased significantly, according to data from the National Association of Realtors, and with more individual investors absorbing REO properties, the organization thinks it is time to limit bulk REO sales to large institutions. Investment-home sales increased 64.5 percent last year to 1.23 million, NAR reports. In a letter to federal regulators, NAR urged policymakers and lenders to focus on expanding the availability of financing for qualified homebuyers and investors to reduce the number of REOs on the market.

With numbers from a CoreLogic report revealing 22.8 percent of borrowers are underwater, principal reduction has been eyed as a key solution to keep borrowers in their homes. The Center for American Progress has released a report detailing solutions to the ""moral hazard"" issue. One is to make principal reduction a one-time program open to borrowers already delinquent; another is to open the program only to current borrowers who are at-risk of default; and the third is ""shared appreciation"" modifications.

Consumer spending grew 0.8 percent in February, the Bureau of Economic Analysis reports. The latest numbers are fueling expectations for a stronger first-quarter economic surge than economists had forecast. Consumer spending grew faster than the 0.6 percent market consensus. However, personal income grew just 0.2 percent in February, which was half the growth rate expected by economists. In dollars, spending increased $86 billion in February while income grew $28.2 billion. Consumer spending represents about 70.6 percent of the nation's gross domestic product.

Home prices in many areas are already rebounding from the bottom of the market, according to the March HomeValueForecast.com update from Pro Teck Valuation Services. This month, the company explores the turnover rate, which is the number of non-distressed sales divided by the total housing stock in a particular market. Pro Teck says this calculation is one of the most powerful and, yet, simplest leading indicators of the future direction of home prices, with the turnover rate hitting bottom six to 18 months before the bottom in home prices.

Still in developing stages, HelpMeRent.com is an online rental directory that specializes in connecting renters to rental property listings nationwide. The website is advocating for the conversion of foreclosed homes as rental properties and is helping to do so through its online services.

In 2011, consumers with at least one open bankcard, auto loan, and mortgage are more likely to try and stay current on their car payment then keep up with their monthly house payment or credit card bills, according to a TransUnion study. Consumers have also been more likely to pay for their credit cards before their mortgages for four consecutive years, according to the study. The TransUnion analysis looked at a sample of approximately 4 million consumers in each quarter of 2011 and found that 39.1 percent were delinquent on a mortgage while current on their auto loans and credit cards.

The number of completed foreclosures in February 2012 was down on a monthly basis and slightly on a year-over-year comparison, but overall, foreclosure inventory has decreased compared to a year ago, according to CoreLogic's National Foreclosure report for February. In February 2012, 65,000 completed foreclosures were reported, compared to 66,000 in February 2011, and 71,000 in January 2012. The number of completed foreclosures over 12 months ending in February was 862,000. From the start of the financial crisis in September 2008, CoreLogic estimates 3.4 million completed foreclosures.

The 30-year fixed-rate mortgage positioned itself back below 4 percent this week as economic indicators point to a weaker housing market and economy, according to Freddic Mac’s Primary Mortgage Market Survey. Last week, the 30-year fixed-rate averaged 4.08 percent, above 4 percent for the first time since October 2011. This week ending March 29, the 30-year averaged 3.99 percent (0.7 point), barely below the 4 percent mark. The 30-year is still below last year's average at this time, when it was 4.86 percent.

Real gross domestic product - the output of goods and services produced by labor and property located in the United States - increased at an annual rate of 3.0 percent in the fourth quarter of 2011, the Bureau of Economic Analysis reported Wednesday, unchanged from the estimate issued a month ago, consistent with market expectations.

First time claims for unemployment insurance fell 5,000 to 359,000 for the week ended March 24, the Labor Department reported Thursday. However, the previous week's report and all data reports back to 2007 - were revised to show a jump for the week ended March 17 to 364,000 instead of the originally reported 348,000.