A National Association of Home Builders quarterly index that measures builder and developer confidence in the condo market dropped 11 points in the final quarter of 2007 compared to the same quarter in the previous year.

The Multifamily Condo Market Index, based on a survey of builders, stood at 18.8 in the fourth quarter on a scale of zero to 100. A score below 50 indicates more negative responses than positive responses.

About two-thirds of builders reported that they lowered condo prices to strengthen sales, with an average price reduction of 11 percent.

OAKLAND, Calif. — Bush administration officials visited a hotbed of foreclosure activity Thursday to make a case that one solution to the problems plaguing mortgage lending and housing markets is better education of borrowers.

Given that Oakland, Calif., has one of the highest foreclosure rates in the nation, you might think Treasury Secretary Henry Paulson and Treasurer Anna Escobedo Cabral would get a chilly reception trying to pitch financial literacy as a solution for the city’s woes.

While some said the government must do more to prevent foreclosures, the Treasury Department officials got a friendly reception from a banking industry crowd as they took to the stage for a “Financial Literacy Town Hall Meeting” in Oakland’s working-class Fruitvale District.

Mortgage rates fell sharply this week on softer economic news, Freddie Mac reported today.

The average rate on 30-year fixed-rate mortgages dropped 21 basis points from a week ago, dipping from 6.24 percent to 6.03 percent, and the average 15-year fixed mortgage tumbled from 5.72 percent to 5.47 percent.

Points, or fees that lenders charge for loan processing expressed as a percent of the loan, averaged 0.5 on the 30- and 15-year loans.

The National Association of Realtors expects the median price of U.S. resale homes to drop 1.2 percent this year, following a 1.4 percent decline in 2007, with sales of resale homes slipping for the third consecutive year.

The forecast report released today also anticipates a 31.1 percent drop in single-family housing starts, a 6.1 percent decline in new-home prices, a rise in housing affordability and a dip in consumer confidence this year compared to 2007.

The federal funds rate is expected to average 3 percent in 2008, compared with 5 percent in 2007, according to the NAR forecast.

The rate of residential construction spending fell for the 23rd consecutive month and hit its lowest rate in about five years in January, the U.S. Census Bureau reported today.

The seasonally adjusted annual rate of spending on private residential construction projects was $455.75 billion in January, down 19.7 percent compared to the same month last year. This rate is a projection of a monthly total over a 12-month period, adjusted to account for seasonal fluctuations in construction activity.

Total construction spending, including public and private commercial and residential projects, hit a rate of $1.16 trillion in January, down 3.3 percent since January 2007.