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Banks have become so restrictive in making mortgages that many worthy homebuyers are being frozen out of the U.S. housing market, and lending practices are not likely to loosen any time soon, Federal Reserve Chairman Ben Bernanke said on Thursday.

Average U.S. rates for 30-year and 15-year fixed mortgages fell to fresh record lows this week, making home-buying and refinancing more affordable than ever for those who can qualify.

The government-backed mortgage financier said it made a profit in the first quarter and that it does not need additional bailout money — a first since the federal government took it over in 2008.

U.S. mortgage giant Fannie Mae made money in the first three months of the year and is not seeking additional federal aid. It's the first time the company has reported a net income gain since it was taken over by the government during the 2008 financial crisis....

Bank of America is making its first moves as part of its deal with the government in the massive $25 billion mortgage settlement. The nation’s second largest bank said today that it started reaching out to more than 200,000 customers about principal reductions on their mortgages. The letters from the bank are expected to arrive at customers’ homes this week with much of the remaining to be sent out by July.

Home prices rose in March for the first time since last July, helped by tighter housing inventory, data analysis firm CoreLogic said on Tuesday.

A couple of weeks ago, I responded to a couple of questions about paying off your mortgage early. This week, I got the opposite question. Given record low mortgage rates, does it even make sense to ever pay off your mortgage at all?

On a suburban block with six family homes, palm trees and views of the surrounding green hills, nothing at 110 Windsor Court stood out. Its occupants, who had moved into the foreclosed house a few years earlier, were quiet types. Until the noise from falling roof tiles alerted neighbors to a fire there one recent morning, and Stephen Snowden, who lived nearby, banged on the front door. Nobody was inside, but firefighters discovered that the house had been converted into a type of illegal business found increasingly in suburbia: a marijuana grow house.

Global real estate markets had a forgettable last year, with prices rising a paltry 0.5 percent, leading to gloomy forecasts for 2012. But over the past five years, prices have registered huge gains.

New data show price declines easing in big cities, sales of new homes improving nationally and foreclosures in California dropping to levels not seen since 2007. The housing market's long, cold winter may finally be heading into a springtime thaw.