California Home Loan 360

With lenders cautious, buyers reluctant and the government slow to help, Santa Clara County home sales hit new lows for February, according to DataQuick Information Systems.

More than 2% of all mortgages in the U.S. were in the process at the end of the fourth quarter. Home equity levels decline. Home foreclosures hit new highs and the amount of equity in homes reached new lows as the housing crisis escalated across the country in 2007, new figures showed Thursday.

Worry over the housing-centered credit crunch intensifies after two mortgage investors say they cannot meet margin calls. The S & P 500 falls 29 points to 1,304 -- an 18-month low. Stock prices tumbled Thursday, driving some key indexes below the lows they set in January, amid deepening worries about the effect of debt problems on the economy.

Stocks plunged Wednesday as the dollar sank to new lows against other major currencies, in a one-two punch that deepened concerns about the outlook for the U.S. economy.