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REAL ESTATE NEWS

Yakima County, Wash., has several claims to fame. It has more fruit trees than any outher county in the nation. Perhaps more surprising, it had home-price appreciation of 18% in fourth-quarter 2007 from a year earlier.

Freddie Mac, the second-biggest provider of U.S. residential mortgage money, on Thursday said its loss widened more than expected to $2.5 billion in the fourth quarter as the housing crises worsened.

The news from the housing market keeps getting worse, but you wouldn't know it by looking at home-builders' stocks.

Fannie Mae and Freddie Mac could have billions of dollars more to finance home purchases after the government on Wednesday on the amount of mortgages the government-sponsored companies can hold on their books.

The government reports more bad news for the beleaguered housing industry. Sales of new homes fell in January for a third straight month, pushing activity down to the slowest pace in nearly 13 years.

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