Jeff Jaye, a mortgage broker in Northern California, used to rely on homeowners looking to refinance their loans for more than two-thirds of his business. Today, he rarely bothers with those applications because he knows most homeowners can't qualify for a new loan.

<p><a href="http://www.msnbc.msn.com/id/26286514/"><img align="left" border="0" src="http://msnbcmedia.msn.com/j/msnbc/Components/Video/080819/c_housing_bottom_080819.thumb.jpg" alt="Aug. 19: Has the housing market bottomed? A panel of experts on CNBC tackles the question. (CNBC)" style="margin:0 5px 5px 0" /></a>Construction of homes and apartments fell in July to the lowest level in more than 17 years, the government reported Tuesday.</p><br clear="all" />

As if the housing market wasn’t scary enough, the record-setting surge in foreclosures could be distorting some of the closely watched housing data used to gauge the market’s health.

<p><a href="http://www.msnbc.msn.com/id/26270434/"><img align="left" border="0" src="http://msnbcmedia.msn.com/j/ap/2327a01f-2973-4e3f-801b-94622295e01c.thumb.jpg" alt="Salvatore Fucile, 82 and his wife, Clara, from Springfield, Pa., wound up in an Option ARM from IndyMac after consolidating two mortgages on their suburban Philadelphia home." style="margin:0 5px 5px 0" /></a>The nation's struggling housing market, already awash in subprime foreclosures, is now getting hit with a second wave of losses as homeowners with liar loans default in record numbers.</p><br clear="all" />

Whether or not the government is actually on the verge of taking over mortgage finance companies Fannie Mae and Freddie Mac, investor fears that a bailout is imminent could turn such a worst-case scenario into reality.

Homebuilders are a little more optimistic about the prospects for home sales over the next six months, but an index reflecting the sector's confidence overall remained at an all-time low, an industry trade association said Monday.

As soaring home prices set the stage for America's great housing meltdown, a critical step in making sure those home sales were a fair deal — the real estate appraisal — was undermined from within.

<p><a href="http://www.msnbc.msn.com/id/26254107/"><img align="left" border="0" src="http://msnbcmedia.msn.com/j/msnbc/Components/Photo/_new/080817-appraise-hmed-11a.thumb.jpg" alt="Marie Petrone and her husband thought they were getting a good deal on North Carolina home. But an inflated appraisal almost caused them to lose everything." style="margin:0 5px 5px 0" /></a>After 25 years as a doorman on Manhattan's Upper East Side, Carl Petrone was ready to retire from the cold winters and his daily commute.</p><br clear="all" />

<p><a href="http://www.msnbc.msn.com/id/25625978/"><img align="left" border="0" src="http://msnbcmedia.msn.com/j/msnbc/Components/Photo_StoryLevel/080710/081007_live_hmed_11a.thumb.jpg" alt="The natural beauty of Muir Woods National Monument is just one of the great things about living in California's Marin County." style="margin:0 5px 5px 0" /></a>Hamilton County, Ind., tops Forbes' list. Ozaukee County, Wis., and Johnson County, Kan. came in second and third.</p><br clear="all" />

<p><a href="http://www.msnbc.msn.com/id/26127523/"><img align="left" border="0" src="http://msnbcmedia.msn.com/j/msnbc/Components/Photo/_new/080810-forbesdyingcities-hmed-5p.thumb.jpg" alt="In Canton, Ohio, a once-booming iron and steel industry has been in terminal decline for years." style="margin:0 5px 5px 0" /></a>The turmoil of the mortgage market granted a temporary reprieve from hearing about the woes of America's Rust Belt.</p><br clear="all" />

<p><a href="http://www.msnbc.msn.com/id/26209739/"><img align="left" border="0" src="http://msnbcmedia.msn.com/j/msnbc/Components/Photo_StoryLevel/080620/080620-Ed McMahon-vmed-439p.thumb.jpg" alt="Donald Trump will soon be Ed McMahon's landlord." style="margin:0 5px 5px 0" /></a>Donald Trump doesn't know Ed McMahon personally, but he's decided to help the financially troubled  entertainer out by buying his home and leasing it to McMahon.</p><br clear="all" />

<p><a href="http://www.msnbc.msn.com/id/25887040/"><img align="left" border="0" src="http://msnbcmedia.msn.com/j/msnbc/Components/Photo/_new/080811-kirkway-estates-bcol-1p.thumb.jpg" alt="When Michigan development Kirkway Estates was planned, it called for 179 homes. As of last year 15 were built." style="margin:0 5px 5px 0" /></a>Americans love new construction, but the crash of the real estate market has left many projects half — or less — finished.</p><br clear="all" />

<p><a href="http://www.msnbc.msn.com/id/7148582/"><img align="left" border="0" src="http://msnbcmedia.msn.com/j/msnbc/Components/Interactives/Business/Economy/Mortgage_rate_080814.thumb.gif" alt="" style="margin:0 5px 5px 0" /></a>Rates on 30-year mortgages didn’t budge this week, while rates on other home loans were a mixed bag.</p><br clear="all" />

A measurement of pending home sales rose in June in a rare piece of positive news for the beleaguered market.

Morgan Stanley told thousands of clients this week that they will not be allowed to withdraw money on their home-equity credit lines, according to a news report.