Still not king of the Hill: In his first term, Obama never learned how to manage Congress

Being president is a daily, even hourly, character test. Every decision from approving a drone attack in Yemen to framing the State of the Union address is fraught with real-world consequences that can shape a president’s legacy.

Of course, political survival plays a role in these calculations. That is why the six weeks since the election are so potentially revealing about Barack Obama, who remains the most guarded and emotionally remote modern president. For the first time since he ran for the Illinois state Senate in 1996, Obama does not have to worry about the short-term verdict of the voters. 

Since his definitive re-election, the president has summoned poetry from despair in his prayerful speech at the Sandy Hook memorial. But Obama also allowed Susan Rice, his presumed choice for secretary of state, to step aside in the face of trumped-up Republican attacks over Benghazi. And, in what appears to have been a futile effort to placate John Boehner, the president this week voluntarily abandoned a position on taxes that he had upheld in virtually every speech during the 2012 campaign.

Until the moment Obama leaves office in 2017, all assessments of his character as a leader are tentative, works in progress subject to revision in light of new developments. But with that sense of humility in mind, here is what we have learned about Obama since the election:

Guns: At his Wednesday press conference, Obama took umbrage at the accurate suggestion that he had been AWOL on the subject of gun violence before 20 children died in Newtown. “I’ve been president of the United States dealing with the worst economic crisis since the Great Depression, an auto industry on the verge of collapse [and] two wars,” Obama said defensively. “I don’t think I’ve been on vacation.”

External events often dictate a president’s priorities, so Obama did not need to invoke Afghanistan and Iraq to justify his prior lack of interest in renewing the assault-weapons ban. But now that the president has pledged that gun legislation will be a centerpiece of his State of the Union address next month, Obama should be held to a higher standard.

Dating back to the 2009 stimulus bill and health care reform, the standard Obama approach to Capitol Hill has been to stand aloof from the legislative details and the backroom bargaining over final wording. But as Joe Biden should know from the 1994 crime bill (which included an ineffective assault-weapons ban), a hands-off approach by the White House does not work with gun legislation. Without active presidential leadership, any gun bill that passes Congress will have NRA-engineered loopholes wide enough to drive an armored truck through.

To govern is to choose. And in the tear-stained aftermath of the Connecticut massacre, Obama appears to have placed a higher legislative priority on guns than immigration reform. It may well be a morally and politically defensible choice, especially if Obama is correct in sensing that this is a once-a-generation moment to lessen gun violence.

But that cause requires an activist LBJ-style president willing to exert unrelenting pressure on Congress rather than the familiar conflict-averse Obama searching for a non-existent consensus. Within the tight limitations imposed by the Supreme Court, it will be difficult to pass federal legislation that both significantly reduces gun deaths and survives constitutional scrutiny.

That is the character test awaiting Obama over guns: The president has a choice between a protracted and debilitating legislative crusade on Capitol Hill or the empty symbolism of a toothless bill that does little to prevent the next school shooting.

National Security: Obama’s second-term national security team could well be dominated by two former senators and Vietnam veterans—John Kerry, who the president just nominated as secretary of state, and, if the rumors are true, Nebraska Republican Chuck Hagel at the Pentagon.

What this may suggest is that Obama has made a conscious decision to reflect America’s war weariness in his top appointments. Both Kerry and Hagel—along with Biden, of course—understand how an unpopular war can derail even the most successful two-term president. It is even possible to interpret both the Kerry pick and potential Hagel nomination as an indication that Obama intends to resist any hair-trigger response to Iran’s nuclear weapons program or other flash-point crisis.

But it is equally likely that, after the furor over Rice, Obama is simply taking the easy path—picking nominees who will sail through Senate confirmation because of their Capitol Hill pedigrees. (A scurrilous attack on Hagel as anti-Israel, orchestrated by Weekly Standard editor and Iraq War cheerleader Bill Kristol, has aroused a fierce counter-reaction).

That is the Obama enigma: How much is ideology and how much is conflict avoidance? With Kerry and Hagel, is the president reflecting a dovish, but pragmatic, outlook in foreign affairs? Or are these both make-no-waves choices picked because of factors that have little to do with their national-security orientation? Kerry, after all, was the only well-known alternative to Rice, and Hagel would be reprising the Robert Gates role as the token Republican at the senior level of the Obama Cabinet.

Taxes: In Iowa City in late May 2007, a fledgling presidential candidate named Obama unveiled his health-care plan. His proposed expansion of coverage would be paid for by (wait for it) ending the Bush tax cuts for those earning more than $250,000 a year. There was nothing magical about $250,000 other than, in political terms, it seemed to separate the wealthy from the upper middle class.

But through slavish repetition by Obama, that $250,000 figure seemed as unalterable as pi. In his mid-November press conference, Obama again talked passionately about the need “to pass a law right now that would prevent any tax hike whatsoever on the first $250,000 of everyone’s income.”

After more than five-and-a-half years, that ironclad Obama position is now officially inoperative. The president’s budget offer to Boehner Monday raised that income threshold to $400,000. Since the House speaker could not even pass a bill raising taxes on those earning more than $1 million per year, there is a persistent sense that—once again—Obama has been rolled.

There is no overarching ideology here, since some compromise in the face of the “fiscal cliff” has long been inevitable. But with Obama, there is always the question of where does political positioning end and bedrock principle begin?

During his 2011 budget talks with Boehner, Obama offered to gradually increase the age of eligibility for Medicare. The president subsequently abandoned that position, but he is now willing to accept a new inflation formula for Social Security that will, over time, slightly reduce benefits. The point is not that Medicare and Social Security should be off limits in all budget negotiations, but rather it comes back to the enduring mystery of precisely what does Obama believe.

During his re-election campaign, Obama remained elusively vague about his second-term plans. But the assumption was that—once free of political pressures—Obama would reveal his governing agenda. Now, it seems quite possible that even after the inaugural address next month, we will still be searching for the Rosetta Stone that deciphers Obama’s vision.
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I’m dreaming of a Spotify Christmas

This Christmas, I’m not going to wreck the holiday like a petulant teenager. I’m not going to build up weird expectations and then explode in disappointment. I’m not going to drive everyone nuts.
I’ll admit it: I’ve been a Christmas-ruiner in my time. But I’ve seen the Ghost of Christmas Future—I’m a batty, carping grandma in unwashed tartans, alone under dusty Ikea mistletoe—and I must change my ways.
My method is music. On the subway and at my desk, music is the swiftest way out of grudges and anxiety for me. Maybe music is this year’s channel to a perfectly imperfect Christmas in my household.
As Pope Benedict XVI puts it: “Whether it is Bach or Mozart that we hear in church, we have a sense in either case of what Gloria Dei, the glory of God, means. The mystery of infinite beauty is there and enables us to experience the presence of God more truly and vividly than in many sermons.”
Wow, it feels super Christmas-y to quote the POPE!
But music in 2012 means I’m dreaming of a Spotify Christmas. This plan was sealed when I was searching for some carols on the wonderfully wikipedic Swedish music-streaming service and a song called “Virginia This Christmas” popped up. It’s all about a person named Virginia who needs to get her life together and stop ruining Christmas. Just the wake-up call I needed.
I went into overdrive with my “Unruined Christmas” playlist. I had a few good ideas: Otis Redding’s “White Christmas,” Dolly Parton’s “Go Tell It On the Mountain,” She & Him doing “Christmas Waltz,” and Björk’s “Solstice.”
But it wasn’t until I posted my first draft of the Spotify list to Twitter and Facebook, and got feedback and more lists to tune into, that I filled my playlist out to the overlong masterpiece it now is.
Now I’ve got Estonian sacred music. Beyoncé’s “Ave Maria.” “Cold December Nights” by Boyz II Men. Tammy Wynette’s “Away in a Manger.” Willie Nelson’s “Pretty Paper.”
Hem’s “Peace at Last.” The Blind Boys of Alabama’s “Last Month of the Year.” David Poe’s “Doxology.” Dolly Parton’s “Go Tell It On the Mountain.” Nancy and Ann Wilson, “Blue Christmas.” Harry Nilsson’s “Snow.”
There’s David Crowder’s gorgeous “O Come, O Come, Emmanuel.” Thea Gilmore’s “That’ll Be Christmas.”
Check out Neil Halstead’s “Man in the Santa Suit.” Are you liking this?
There’s freaking Carla Bruni doing “Jolis Sapins” and “Noël D’Espoir”!
OK, now I’m boasting. Which is the kind of Christmas person I’m trying not to be. “Aren’t the gingerbread men I made good?” “Didn’t I get mom the perfect present?”
But Spotify playlist-makers—formerly mixed-tape-makers—cherish their eclecticism and their juxtapositions. Unlike me, though, they’re usually modest about all that.
When other playlisters recommended their lists to me—on Twitter, Facebook and email—they praised my list and humbly suggested their own. (Their lists turned out to be Grammy-quality: the coolest, weirdest Christmas songs I’ve ever heard.)
Spotify has opened my eyes to so much about music. Just what I’ve long feared about headphones—that they lock us away in separate sonic universes, and shut us out of shared auditory space—has been upended on Spotify. While I listen to my own hit-or-miss choices, I can see what my Facebook friends are listening to. I can tune into their stuff as if they were DJs, and jump in to their winding sets. It’s an amazing, intimate way to experience music socially.
Right now, as I type this, an executive I know is listening to Rickie Lee Jones. A music-business person is listening to The Vaccines. A journalist is listening to Ravi Shankar.
It’s kind of cool to know that, during a weekday, at midday, everyone’s in their own musical sweet spot. I decided to jump on The Berlin Philaharmonic doing “The Nutcracker.”
I wondered whether I should click on the track and move it into my “Unruined Christmas” playlist. And then re-link to the playlist on Twitter, claiming I’d made revisions. I thought long and hard before deciding I had plenty of classical.
So maybe I wasn’t being all that productive. But it occurred to me that I also wasn’t ruining anything. This Christmas, that’s enough. Merry Everything!
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The courage of Boehner and McConnell: No, they’re not Lincolns. But they did something good.

If John Kennedy had not written “Profiles in Courage,” today we might have a more realistic understanding of political valor. But JFK’s 1957 Pulitzer Prize-winning book so raised the bar for bravery in public life that it now seems obvious that no modern figure can measure up.

Who in the 21st century could possibly match Daniel Webster’s oratory as he heroically struggled to save the Union? Or replicate Edmund Ross’ moral fortitude as he destroyed his political career to cast the decisive vote against impeaching Andrew Johnson? Where once legislators risked being burned in effigy and physically threatened, these days the likely consequence of a courageous vote in Congress is a new career as a high-priced lobbyist.

This week’s ungainly legislative compromise that merely delayed the fiscal apocalypse until March can be ridiculed as a Profile in Timidity. Rather than ratify a grand bargain that would reform taxes and spending for a decade, Congress in predictable fashion did as little as possible as late as possible. No one, Republican or Democrat, is going to brag in their memoirs about the fortitude they displayed, dangling over the abyss, as they scaled the Fiscal Cliff.

But Senate Majority Leader Mitch McConnell and House Speaker John Boehner deserve credit for the last-minute fortitude they displayed in ending the dispiriting deadlock over extending the Bush tax cuts. It wasn’t Kennedy-defined courage—and it doesn’t erase the prior stubbornness on taxes by the Republican congressional leaders—but their political moxie should be noted.

On Sunday, with the countdown clock ticking, McConnell made a direct appeal to Joe Biden when his negotiations with Senate Democratic leader Harry Reid reached a dead end. Rather than setting up secret back-channel talks with Biden, a longtime colleague, McConnell announced on the Senate floor, “I also placed a call to the vice president to see if he could help jump-start the negotiations on his side.”

The Biden-McConnell agreement challenged Republican orthodoxy in two major ways: It raised taxes on families earning more than $450,000, and it did not extract spending cuts from the Democrats. But the White House also made a big concession: Barack Obama abandoned his mantra since 2007 that families earning more than $250,000 should pay more in taxes. The difference between a $250,000 and a $450,000 threshold is about $200 billion in tax revenues over the next decade—enough to pay for the clean-up from three Hurricane Sandys.

As the Senate minority leader, McConnell presides over the more mainstream wing of Capitol Hill Republicans. While there are Tea Partiers and right-wing firebrands among Senate Republicans, there are also a few remaining moderates and old-guard legislators who remember when the word “bipartisan” was not considered hate speech.

Still, it was impressive that McConnell convinced all but five Senate Republicans to support the legislation. What was more politically ominous, though, is that the two Senate Republicans most likely to run for president in 2016 (Marco Rubio and Rand Paul) both voted “no.” Rubio’s and Paul’s votes were obviously shaped by ideology, but the two White House dreamers also presumably made a calculation that Republican presidential primary voters will demand litmus-test purity on taxes.

It has been a season of petty humiliations for John Boehner. As the congressional Republican most determined to negotiate a lasting deficit agreement with Obama, Boehner resumed talks with the president after the election in quest of the epic deal that eluded both of them in 2011. But once again, Boehner was not willing to produce enough tax revenue and Obama was not prepared to offer enough spending cuts to achieve a workable compromise.

Permanently breaking off talks with the White House, Boehner attempted to pass what he called “Plan B,” which would have preserved the Bush tax cuts for everyone earning less than $1 million a year. But the anti-tax fervor among House Republicans was so intense that Boehner abandoned “Plan B” when it became obvious that it would not pass.

Embarrassed by his failure at vote counting and left out of the Biden-McConnell negotiations, Boehner was a portrait in irrelevance until the Senate passed its own fiscal cliff legislation in the wee hours on New Year’s Day. Now it was up to Boehner’s House to determine whether the Senate compromise would be enshrined into law or whether a lingering fiscal uncertainty would have put a crimp in the economy all through January.

Up to now, Boehner had adhered to the decade-long Republican tradition that no legislation would reach the House floor unless it had the support of a majority of the GOP. But after the failure of “Plan B,” it was obvious that the only way to pass the Senate bill in the House was with an overwhelming majority of Democrats combined with a rump faction of end-the-crisis Republicans.

As the first rays of daylight hit the Capitol on New Year’s Day, Boehner confronted a series of unpalatable choices. He could try to pass the Senate bill with mostly Democratic votes, in violation of the majority-of-the-majority tradition. He could support an effort to add spending cuts to the Senate legislation, even though all signs suggested that this was a route to a new impasse. Or he could follow the Republican base right off the cliff—in effect, do nothing until the new Congress began work on Thursday.

Boehner chose legislating over posturing. Even though Eric Cantor and Kevin McCarthy (the No. 2 and No. 3 figures in the House GOP leadership) opposed the Senate bill, Boehner remained undaunted. By tradition, House speakers rarely vote on legislation, but Boehner put his gavel aside to vote for the Senate bill. Even more pointedly, Boehner had a friendly chat with Democratic leaders Nancy Pelosi and Steny Hoyer on the House floor just before the vote.

No one burned Boehner in effigy. But he was excoriated for his apostasy on right-wing websites. A few hours before the final House vote, the banner headline on the Drudge Report read, “Boehner Falls on the Sword. Tax on 77% of Households.” (Most of this tax increase, by the way, stemmed from the expiration of a temporary 2 percentage point cut in payroll taxes). A lead story Tuesday on the Breitbart Big Government website heralded Eric Cantor’s challenge to Boehner over the Senate bill.

For all the unnecessary pyrotechnics, for all the missed opportunities over the past 18 months, rationality triumphed over ideological extremism in Washington this week. And if this precedent helps prevent America from defaulting on its debts when the government runs out of borrowing power in March, so much the better. But, in the interim, Mitch McConnell and John Boehner deserve muted, but sincere, applause for bringing the anti-tax Republicans back from the brink.
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The Republicans -- After Dunkirk

At the Potsdam conference with Harry Truman and Josef Stalin, Winston Churchill learned that the voters of the nation he had led for five years through World War II had just voted to throw him out of office.
"It may well be a blessing in disguise," said his wife Clementine.
"At the moment, it seems quite effectively disguised," replied Churchill.
Republicans must feel that way today. For they have survived their own Dunkirk. They may have left their helmets, canteens and rifles behind, but they did finally get off the beach.
That Republicans suffered a rout, as the British did with the fall of France and evacuation at Dunkirk in 1940, is undeniable.
The party that blocked tax increases since George H.W. Bush agreed to raise Ronald Reagan's top rate of 28 percent to 35 percent, thus repudiating his "no-new-taxes" pledge, just signed on to one of the largest tax increases in history.
Payroll taxes on working Americans will rise by a third, from 4.2 percent of wages and salaries to 6.2 percent. For couples earning $450,000, the tax rate rises from 15 to 20 percent on dividends and capital gains, and from 35 to 39.6 percent on ordinary income. The death tax will rise from 35 to 40 percent on estates over $5 million.
Obamacare will push those rates up further. And now we learn the bill was stuffed with tax breaks for windmills, NASCAR owners and Hollywood.
Why did Republicans go along?
Had they not, taxes would have risen for everyone. And Obama would have postured as the tax-cutting savior of the middle class by proposing to restore the Bush tax cuts for every couple earning less than $250,000.
What does this bill do to spur growth and create jobs? Nothing.
Even Lord Keynes would have wondered what these Americans were doing raising taxes on a recovering economy.
The GOP defense: We took this rotten deal to prevent a worse one.
And what, if any, is the "blessing in disguise"?
Obama has no more leverage. The Bush tax cuts for the 98 percent are now permanent. To block further tax hikes, all the House need do, from now to 2017, is stand united and just say no.
Obama is thus almost certainly staring at four more trillion-dollar deficits to match the last four, and he has no leverage to force Republicans to provide him with new revenue.
The president threatens that before he signs on to new spending cuts, Republicans will have to "make the rich pay their fair share."
The GOP response should be: We will work with you on spending cuts, but there will be no more tax increases. If higher taxes are a condition you impose for spending cuts, there will be no spending cuts.
But, Mr. President, you will be in the driver's seat when we go over the cliff into bankruptcy. You will be your party's Herbert Hoover.
John Boehner and the Republicans got their clocks cleaned in these negotiations because they believed the president was dealing in good faith.
But the ideology and the interests of the Democratic Party dictate not only preserving federal programs, but expanding the numbers of beneficiaries, already near 100 million.
For the larger the number of beneficiaries, the larger the bloc of voters for the party of government and the greater the opposition to any who would dare to cut government.
The question for Republicans is what they do now, besides say no to new taxes.
Most Democrats are not going to agree to freeze or cut Social Security, Medicare, Medicaid, Obamacare, food stamps, federal aid to education, Head Start, Pell Grants, housing subsidies, welfare, earned income tax credits or unemployment checks. These are the party's pride and joy, the reason the Democratic Party exists.
As we have seen since 2009, Democrats will readily accept trillion-dollar deficits rather than do even minor surgery on their cherished programs.
As for the Republicans, is it wise to propose cuts in Social Security and Medicare, upon which Republican seniors depend, when they know for certain Democrats will reject those cuts and take credit for doing so?
Will Republicans recommend cuts in defense and foreign aid and a rollback of the U.S. military presence in Europe, the Far East and Persian Gulf? Sens. John McCain and Lindsey Graham already want to know why we are not intervening in Syria. Soon, some Republicans will be beating the drums for strikes on Iran.
Republicans Chris Christie and Peter King already want to know why Congress has not forked over $60 billion to repair the damage done to New Jersey and New York by Hurricane Sandy.
With the GOP splintering, with Democrats running the Senate and White House, conservatives must realize: They cannot make policy.
Let the Democrats take the lead, drive the car, propose the tax hikes, refuse to make the spending cuts and answer for where we are in 2016, because, right now, it looks as though we are headed for an even bigger cliff.
For the next two years, the best offense may be a good defense.
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Republicans see some leverage in "fiscal cliff" talks

WASHINGTON (Reuters) - U.S. Republicans may have some leverage in their fiscal cliffhanger with President Barack Obama: the threat of forcing a disproportionate number of Democrats to pay the so-called alternative minimum tax.
Under U.S. law, taxpayers each year must pay the greater of regular federal income tax, or the AMT. The latter requires taxpayers to give up certain tax breaks, typically exemptions and deductions for state and local taxes and medical costs.
Only about 4 million taxpayers pay the AMT because Congress routinely passes a law to adjust for inflation, to spare middle-income and upper-middle income taxpayers. Without this legislative fix, called a "patch" by lawmakers, up to 33 million taxpayers will have to pay an AMT liability for 2012, according to the Internal Revenue Service.
That is one in five taxpayers.
The number of taxpayers affected by the AMT would jump because the AMT exemption amounts and income brackets do not automatically rise with inflation and also because across-the-board individual tax cuts a decade ago did not cut AMT rates.
States with the wealthiest taxpayers and the steepest state taxes, which typically cannot be deducted under the AMT, include New York, California and Illinois - Democratic strongholds.
That may make the threat of a lapse one of the Republicans' strongest cards after Obama's re-election last month on a theme of tax fairness.
"The AMT is one of the more significant pieces of leverage that the Republicans have," said Evan Liddiard, a former tax adviser to Orrin Hatch, the top Republican on the Senate Finance Committee. "It will pinch harder in the blue states."
That may make Republicans less likely to agree to a bill that addresses only the AMT.
Obama's Democrats and Republicans, led by House of Representatives Speaker John Boehner, have been battling while trying to keep from falling over a $600 billion "fiscal cliff" - a combination of tax increases and spending cuts due to be implemented early next year.
Now at a standstill, talks on how to avert the fiscal cliff have been largely focused on whether to renew low tax rates for the wealthiest taxpayers along with everyone else.
In a brief interview in the Capitol, Hatch said voters in the Democratic-leaning states will not be amused if their taxes go up unexpectedly.
"When they find out they are going to get hammered because of the AMT and the lack of plan by this administration to resolve that problem, yes, I think that will cost them (the Democrats) a few votes," Hatch said.
Because the latest AMT patch expired in 2011, it is in some ways more urgent to address the AMT than the Bush-era tax cuts expiring at the end of December.
Congress last patched the AMT in the lame-duck session in 2010. A bipartisan bill passed by the Senate finance committee to patch AMT for 2012 and 2013 was estimated to cost $132.2 billion.
The cost is one reason the AMT never gets patched permanently. Republicans generally want to scrap the AMT altogether; Obama's latest budget calls for adjusting it for inflation.
IRS WARNINGS
Further complicating the AMT picture is the chaos predicted for the tax-filing season due to begin on January 22, the first working day after Obama's inauguration ceremony in Washington.
A letter from the tax-collecting IRS Commissioner Steve Miller on potential agency problems related to the fiscal cliff focuses almost exclusively on the AMT.
Failure to "patch" the AMT could lead to 60 million taxpayers not being able to file tax returns or get a refund, in addition to a software nightmare for the IRS computer systems.
Miller wrote lawmakers on November 13 warning them of serious repercussions for taxpayers, including 28 million with a "very large unexpected tax liability," and delays in refunds for millions.
"Consistent with past practice, I have instructed IRS staff again this year to leave our core systems "as-is" with respect to the AMT, and hold off on the substantial design and engineering work" required otherwise, he wrote.
Miller last briefed the Senate Finance Committee about the need for action late last month, according to a Senate source.
Representative Richard Neal, a senior Democrat on the Ways and Means Committee who represents parts of Massachusetts, said fixing the AMT was an absolute must.
"It has to be done. It reaches too many people if it's not," Neal said. "I think it is again being used as (a) bargaining (chip)."
Republicans say they are holding out for a bigger deal.
"That is not going to solve the fiscal cliff," said Republican Representative Pat Tiberi, who leads the revenue sub-panel of the tax-writing House Ways and Means Committee.
"It is a very important part of the tax code but once you start picking winners and losers in the tax code, how do you get ... the big deal done?"
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Toll Brothers 4Q net income soars on tax benefit

 Toll Brothers says its fiscal fourth-quarter net income soared, helped by a large income tax benefit and a 48 percent rise in revenue. The luxury homebuilder delivered more homes and its order backlog increased.
CEO Douglas C. Yearley Jr. said in a statement on Tuesday that higher home prices, low interest rates, pent-up demand and improving consumer confidence prompted buyers to return to the housing market this year.
Last week a batch of government reports showed that rising home values, more hiring and lower gas prices pushed consumer confidence in November to the highest level in nearly five years. On Tuesday, Core Logic reported that a measure of U.S. home prices rose 6.3 percent in October compared with a year ago, the largest yearly gain since July 2006.
For the three months ended Oct. 31, Toll Brothers Inc. earned $411.4 million, or $2.35 per share. That's up sharply from $15 million, or 9 cents per share, a year ago.
The latest quarter included an income tax benefit of $350.7 million.
Excluding the tax benefit and other items, earnings were 35 cents per share.
Analysts expected earnings of 25 cents per share for the quarter, which typically exclude one-time items, according to a FactSet poll.
Revenue increased to $632.8 million from $427.8 million, topping Wall Street's forecast of $565.1 million.
Homebuilding deliveries climbed 44 percent to 1,088 units, while net signed contracts jumped 70 percent to 1,098 units. The average price of homes delivered increased to $582,000 from $565,000 a year earlier.
Toll Brothers, based in Horsham, Pa., may benefit by catering to the luxury sector. Its target market includes households that typically make more than $100,000 a year, can afford to make a down payment of as much as 30 percent, have great credit record and an unemployment rate about half that of the general population.
Backlog, a measure of potential future revenue, rose 54 percent to 2,569 units. The cancellation rate declined to 4.6 percent from 7.9 percent.
The company's full-year net income jumped to $487.1 million, or $2.86 per share, from $39.8 million, or 24 cents per share, a year earlier. Annual revenue climbed 27 percent to $1.88 billion from $1.48 billion.
Toll Brothers anticipates delivering between 3,600 and 4,400 homes in 2013 at an average price of $595,000 to $630,000 per home.
Its shares fell 57 cents, or 1.8 percent, to close at $31.86 Tuesday. Its shares peaked for the past year at $37.08 in mid-September.
The company has operations in Arizona, California, Colorado, Connecticut, Delaware, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Texas, Virginia, and Washington
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IRS finalizes new tax for medical devices in healthcare law

WASHINGTON (Reuters) - The U.S. Internal Revenue Service on Wednesday released final rules for a new tax on medical devices, products ranging from surgical sutures to knee replacement implants, that starts next year as part of President Barack Obama's 2010 healthcare law.
The 2.3-percent tax must be paid, effective after December 31, by device-makers on their gross sales. The tax is expected to raise $29 billion in government revenues through 2022.
Companies including Boston Scientific Corp, 3M Co and Kimberly-Clark Corp have been lobbying the U.S. Congress for a repeal of the tax.
A repeal bill passed the Republican-controlled U.S. House of Representatives in June, but it has not been voted on by the Democratic-controlled Senate.
"The excise tax is on the medical device manufacturers and importers (who) will now have access to 30 million new customers due to the health care law," Treasury Department spokeswoman Sabrina Siddiqui said in a statement.
Many medical devices that are sold over-the-counter - such eyeglasses, contact lenses and hearing aids - are exempt from the tax, as are prosthetics, the IRS said.
The tax applies mostly to devices used and implanted by medical professionals, including items as complex as pacemakers or as simple as tongue depressors.
Products sold for humanitarian reasons, such as experimental cancer treatment devices, are not exempt from the tax.
Some medical device companies are hoping to delay the tax's start date as part of a resolution of the "fiscal cliff" deadline at the end of the year involving many tax and spending measures, said Steve Ferguson, chairman of Cook Group Inc.
"We would like to be part of the punt," Ferguson said, referring to an extension of current tax policy into 2013.
In one potentially problematic aspect of the tax, companies selling dual-use products to medical and non-medical customers must pay the tax on those products, potentially putting them at a competitive disadvantage, said Lew Fernandez, a director at PricewaterhouseCoopers LLP and a former IRS official.
For example, it remains "an open question" when latex gloves come under the tax, he said.
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H&R Block 2Q loss narrows as revenue rises

H&R Block's fiscal second-quarter loss narrowed, helped by cost-cutting efforts. Revenue climbed mostly because of a strong tax season in Australia.
The nation's largest tax preparation company typically turns in a loss in the August-to-October period because it takes in most of its revenue during the U.S. tax season. H&R Block's quarterly performance beat analysts' estimates and its stock hit the highest level in more than two years.
The company is optimistic and gearing up for its busy season.
"The U.S. tax season is right around the corner and we believe we're on pace to deliver significant earnings and margin expansion in fiscal 2013," President and CEO Bill Cobb said in a statement on Thursday.
For the three months ended Oct. 31, H&R Block Inc. lost $105.2 million, or 39 cents per share. A year earlier it lost $141.7 million, or 47 cents per share, for the quarter.
Its loss from continuing operations was 37 cents per share. Analysts surveyed by FactSet expected a bigger loss of 41 cents per share.
Selling, general and administrative expenses declined and the quarter was free of any impairment charges. The prior-year period included a $4.3 million impairment charge.
Revenue rose 6 percent to $137.3 million from $129.2 million. This topped Wall Street's forecast of $129.6 million.
Shares of H&R Block gained 89 cents, or 5.1 percent, to close at $18.26. Earlier in the session the stock reached $18.40, its highest point since May 2010.
Tax services revenue increased 7 percent primarily due to the strong Australian tax season. Corporate revenue fell because of lower interest income from H&R Block Bank's shrinking mortgage loan portfolio.
H&R Block disclosed in October that it hired Goldman Sachs to help it explore options for its banking arm, H&R Block Bank. Those options, Block said, could result in the company no longer being regulated as a savings and loan holding company by the Federal Reserve.
The Federal Reserve announced some proposed rules in June that would impose higher capital requirements on savings and loan holding companies. H&R Block contends that if the proposed rules are enacted it would have to hold on to significant additional capital.
H&R Block, based in Kansas City, Mo., prepared 25.6 million tax returns worldwide in fiscal 2012.
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Obama says Republican "fiscal cliff" plan out of balance

 President Barack Obama rejected a Republican proposal to resolve a looming fiscal crisis on Tuesday as "still out of balance" and insisted any deal must include a rise in income tax rates on the wealthiest Americans.
Obama told Bloomberg Television that the Republicans' reliance on eliminating tax deductions instead of letting taxes rise on Americans making more than $250,000 a year would not raise enough money to fund the government.
House of Representatives Speaker John Boehner of Ohio, the top Republican in Congress, laid out a proposal on Monday that called for spending cuts but did not give any ground on Obama's call for an increase in tax rates for the top 2 percent of U.S. earners.
"Unfortunately, the Speaker's proposal right now is still out of balance. You know, he talks, for example, about $800 billion worth of revenues, but he says he's going to do that by lowering rates. And when you look at the math, it doesn't work," Obama said.
Obama, who won re-election last month, said it was important for Republicans to acknowledge that tax rates had to rise for top earners to raise revenue sufficient to balance spending cuts.
"We're going to have to see the rates on the top 2 percent go up. And we're not going to be able to get a deal without it," he said.
Obama said on Tuesday that while tax rates must go up for a "fiscal cliff" deal, it may be possible to lower rates at the top end of the scale late next year as part of tax reforms that would close loopholes and limit deductions.
"Let's let those go up," Obama told Bloomberg in an interview, referring to tax rates for the wealthiest Americans.
"And then let's set up a process with a time certain, at the end of 2013 or the fall of 2013, where we work on tax reform, we look at what loopholes and deductions both Democrats and Republicans are willing to close, and it's possible that we may be able to lower rates by broadening the base at that point."
Obama acknowledged there were more spending cuts that could be made and he pledged to work with Boehner to trim what he called excessive healthcare costs in the budget but that a deal was not possible without raising tax rates on the wealthy.
"There's probably more cuts that we can squeeze out, although we've already made over $1 trillion worth of spending cuts," he said.
Obama said there was not enough time this year to come up with an overhaul of the U.S. tax system and entitlement programs that Republicans want as a condition for an agreement to avoid the so-called fiscal cliff, a combination of tax hikes and spending cuts set to start in 2013 that economists predict will throw the economy into depression.
He said that despite weaknesses in Europe and Asia, he believed the U.S. economy is "poised to take off."
Obama added he is considering bringing a top business executive onto his economic team, but that the Senate confirmation process can be so difficult that some business executives shy away from government service.
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Samsung will patch malware exploit affecting Galaxy S III and Galaxy Note II

Samsung (005930) Galaxy S III and Galaxy Note II owners had a big scare last week when it was discovered the smartphones are vulnerable to app-based attacks stemming from a security hole with their Exynos-4 processors. Samsung confirmed to Android Central that it has investigated the “potential security issue” and re-states that the “issue may arise only when a malicious application is operated on the affected devices; however, this does not affect most devices operating credible and authenticated applications.” Nonetheless, Samsung will be releasing a software update “to address it as quickly as possible.” Samsung’s swift action is reassurance that it values the more than 30 million Galaxy S III and more than 5 million Galaxy Note II customers it has racked up this year.
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Kodak in $525 million patent deal, eyes bankruptcy end

Eastman Kodak Co agreed to sell its digital imaging patents for about $525 million, a key step to bringing the photography pioneer out of bankruptcy in the first half of 2013.
The deal for the 1,100 patents allows Kodak to fulfill a condition for securing $830 million in financing.
The patent deal was reached with a consortium led by Intellectual Ventures and RPX Corp, and which includes some of the world's biggest technology companies, which will license or acquire the patents.
Those companies are Adobe Systems Inc, Amazon.com Inc, Apple Inc, Facebook Inc, Fujifilm, Google Inc, Huawei Technologies Co Ltd, HTC Corp, Microsoft Corp, Research In Motion Ltd, Samsung Electronics Co Ltd and Shutterfly Inc, according to court documents.
Kodak still must sell its personalized and document-imaging businesses as part of the financing package, and also has to resolve its UK pension obligation.
Kodak said the patent deal puts it on a path to emerge from Chapter 11 in the first half of 2013.
"Our progress has accelerated over the past several weeks as we prepare to emerge as a strong, sustainable company," said Antonio Perez, chairman and chief executive of the Rochester, New York-based company.
The patent portfolio was expected to be a major asset for Kodak when it filed for bankruptcy in January. An outside firm had estimated the patents could be worth as much as $2.6 billion.
Kodak's patents hit the market as intellectual property values have soared and technology companies have plowed money into patent-related litigation.
For example, last year Nortel Networks sold 6,000 wireless patents in a bankruptcy auction for $4.5 billion and earlier this year Google spent $12.5 billion for patent-rich Motorola Mobility.
But Kodak's patent auction dragged on beyond the initial expectation that it would be wrapped up in August. One patent specialist blamed those early, overly optimistic valuations, which he said encouraged Kodak's team to set their sights too high.
"Unfortunately (Kodak management) was misled into thinking it was worth billions of dollars and it wasn't," said Alex Poltorak, chairman of General Patent Corp, a patent licensing firm. "I think they sold them at a very good price."
He said after Google acquired Motorola, the search engine company no longer needed patents at any price, deflating the intellectual property market.
Kodak traces its roots to the 19th century and invented the handheld camera. But it has been unable to successfully shift to digital imaging.
It will likely be a different company when it exits bankruptcy, out of the consumer business and focused instead on providing products and services to the commercial imaging market.
The patent sale is subject to approval by the U.S. Bankruptcy Court in Manhattan.
The Kodak bankruptcy case is in Re: Eastman Kodak Co. et al, U.S. Bankruptcy Court, Southern District of New York, No. 12-10202.
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Kodak acuerda venta patentes por 525 mln dlr, busca fin bancarrota

La firma Eastman Kodak Company acordó vender sus patentes de imágenes digitales en una operación valuada en 525 millones de dólares, un paso clave para que la empresa pionera de la fotografía pueda salir de la bancarrota en el primer semestre del 2013.
El acuerdo por 1.100 patentes permite a Kodak cumplir una condición para conseguir 830 millones de dólares de financiamiento.
El acuerdo sobre patentes se logró con un consorcio liderado por Intellectual Ventures y RPX Corp, que incluye a algunas de la compañías de tecnología más grandes del mundo, que comprarán o licenciarán las patentes.
Esas compañías son Adobe Systems Inc, Amazon.com Inc, Apple Inc, Facebook Inc, Fujifilm, Google Inc, Huawei Technologies Co Ltd, HTC Corp, Microsoft Corp, Research In Motion Ltd, Samsung Electronics Co Ltd y Shutterfly Inc, según documentos de la corte.
Kodak aún debe vender su negocio de imágenes personalizadas y de documentos como parte del paquete de financiamiento, y además debe resolver sus obligaciones de pensiones en el Reino Unido.
La compañía dijo que el acuerdo de patentes la pone en camino a salir de la bancarrota en la primera mitad del 2013.
"Nuestros avances se han acelerado durante las últimas semanas a medida que nos preparamos para surgir como una compañía sólida y sostenible", dijo Antonio Pérez, presidente ejecutivo de la firma con sede en Rochester, Nueva York.
Cuando Kodak solicitó la bancarrota en enero, se esperaba que la cartera de patentes fuera un enorme activo para la empresa. Una compañía externa había estimado que las patentes pudiesen valer hasta 2.600 millones de dólares.
Las patentes de Kodak salieron al mercado en momentos en que los valores de la propiedad intelectual se han disparado y las compañías de tecnología han destinado mucho dinero a litigios legales relativos a patentes.
Por ejemplo, Nortel Networks vendió el año pasado 6.000 patentes inalámbricas en una subasta por bancarrota por 4.500 millones de dólares y anteriormente este año Google gastó 12.500 millones de dólares por Motorola Mobility, que tiene una amplia cartera de patentes.
Pero la subasta de patentes de Kodak se prolongó más allá de las expectativas iniciales, que apuntaban a una conclusión en agosto. Un especialista en patentes culpó a las estimaciones iniciales extremadamente optimistas, que dijo alentaron al equipo de Kodak a poner sus metas demasiado altas.
"Lamentablemente (la gerencia de Kodak) fue engañada y creyó que valía miles de millones de dólares, pero no era así", dijo Alex Poltorak, presidente de General Patent Corp, una firma de licencias de patentes. "Creo que las vendieron a un muy buen precio", agregó.
El dijo que después de que Google compró a Motorola, la compañía de búsquedas en internet ya no necesitaba patentes a ningún precio, lo que hizo caer los precios del mercado de propiedad intelectual.
Las raíces de Kodak se remontan al Siglo XIX e inventó la cámara portátil. Pero no ha podido girar con éxito a la fotografía digital.
Posiblemente será una compañía diferente cuando salga de la bancarrota, fuera del negocio para los consumidores y concentrada, en cambio, en brindar productos y servicios al mercado de imágenes comerciales.
Los acuerdos están sujetos a la aprobación de la Corte de Bancarrota de Estados Unidos en Manhattan.
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Kodak sells digital imaging patents for $525M

Eastman Kodak is selling its digital imaging patents for about $525 million, money the struggling photo pioneer says will help it emerge from bankruptcy protection in the first half of next year.
Apple Inc., Google Inc., Samsung Electronics Co., Research In Motion Ltd., Microsoft Corp., China's Huawei Technologies, Facebook Inc. and Amazon.com Inc. are among the 12 companies paying to license the 1,100 patents, according to court filings. Patents have become very valuable to digital device makers, who want to protect themselves from intellectual property lawsuits. But Kodak, which has been trying to make the sale happen for more than a year, wound up receiving substantially less money than had been expected.
Rochester, N.Y.-based Eastman Kodak Co. said Wednesday that the patent sale will help it repay a substantial amount of a loan it received under the bankruptcy process. It also satisfies a key condition of a new, cheaper $830 million loan package, which required that the patents be sold for at least $500 million.
Founded in 1880, Kodak filed for Chapter 11 bankruptcy protection in January after a long struggle to stay relevant. First came competition from Japanese companies, then the shift from film to digital photography over the past decade. Kodak failed to keep up. The once-mighty company, whose workforce peaked at 145,300 in 1988, said at the end of September that it expected to wind up with 13,100 employees after another round of job cuts.
Since filing for bankruptcy protection, Kodak has sold off several businesses, such as its online photo service, and said it would shut down other divisions, including the manufacturing of digital cameras. The company intends to focus on commercial and packaging printing. It sees home photo printers, high-speed commercial inkjet presses, software and packaging as the core of its business as it emerges from bankruptcy.
Kodak began mining its patent portfolio for license revenue in 2008. In January 2010, it sued Apple and RIM, saying that smartphone makers infringed its patent for technology that lets a camera preview low-resolution versions of a moving image while recording still images at higher resolutions.
But by July 2011, it was trying to sell its 1,100 digital imaging patents. Analysts initially thought the portfolio could fetch between $2 billion and $3 billion. But Kodak struggled to find a buyer.
The 12 licensees for Kodak's imaging patents were organized by Intellectual Ventures and RPX Corp. Kodak spokesman Christopher Veronda said each licensee will pay a portion of the total cost and then have access to all the patents. The deal also includes an agreement to settle patent-related litigation.
The sale represents "another major milestone toward successful emergence" from bankruptcy, said Antonio M. Perez, Kodak's chairman and CEO, in a statement. "Our progress has accelerated over the past several weeks as we prepare to emerge as a strong, sustainable company."
Kodak will keep ownership of about 9,600 patents, focused mostly on commercial imaging and printing technologies.
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News Summary: Kodak sells patents for $525 million

STEPPING STONE: Eastman Kodak is selling its digital imaging patents for about $525 million, money the struggling photo pioneer says will help it emerge from bankruptcy protection in the first half of 2013.
GROUP OF 12: Apple Inc., Google Inc., Samsung Electronics Co., Research In Motion Ltd., Microsoft Corp., China's Huawei Technologies and Facebook Inc. are among the 12 companies paying to license the 1,100 patents, according to court filings.
HISTORY: Founded in 1880, Kodak filed for Chapter 11 bankruptcy protection in January after a long struggle to stay relevant. First came competition from Japanese companies, then the shift from film to digital photography. Kodak failed to keep up.
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Celebrity, Inc.

What can four drunk airplane passengers, first time parents, and a delightful new book called Celebrity, Inc. do for your wallet?
Plenty.
Let me start with the drunks and new parents. Monday night I boarded a very delayed flight from Houston to Los Angeles. Behind me were four 20/30-somethings boisterously swigging from "coffee" cups. (Our gate was across from a Cantina and you could practically smell the tequila in their paper cups.)
As the boarding continued they grew increasingly animated. Their frenetic energy seemed to wind up not just each other but everyone around them. Fellow passengers were visibly agitated.
Just before the plane doors closed, a young couple came on with a sleeping baby. The last two open seats were amongst this motley crew.
Suddenly, everything changed.
The presence of the earnest and exhausted parents had an immediate calming effect on both the inebriated passengers and those around them. It was as if a mirror had been placed in the center of the plane to remind us all of our humanity.
Enter, Jo Piazza's delicious new book, Celebrity, Inc: how famous people make money.
To me, this book is the figurative version of the newborn's parents getting on the plane. It serves as a mirror reflecting back the reality what's in the "coffee" cups of the celebrity scene.
That got me wondering what other financial lessons the author of Celebrity, Inc. might have stumbled across while writing this fascinating book. Thankfully, Jo Piazza was willing to share with us...
Q: Of the celebrities you profile in Celebrity, Inc. whose money attitude were you most impressed with and why?
Jo: Despite current controversy I was completely impressed with the Kardashian's money attitude and their work ethic. I have never met a celebrity crew who works so hard to maintain their brand. I don't necessarily agree with the massive amounts they are paid to do what they do, but unlike a lot of celebs they truly do work for it. And beyond that they manage their money well. They budget, they funnel funds back into new projects, they try not to spend excessively and they do donate a portion of their income to charity each year.
(2) What surprised you the most about the money habits you observed during your Celebrity, Inc. research?
Jo:  So many of the people I talked to over-spent their budgets on a consistent basis even though they were making crazy amounts of money. Spencer Pratt told me he and Heidi Montag pulled in about $10 million in 4 years but because they thought it would keep coming at the same rate they blew through it all. That's a common thread I found with a lot of celebs. They're making so much but they're spending just as quickly. They buy $5 million houses and spend half a million on a security detail and they rarely save a dime. I just don't think they realize the shelf life of fame is shorter than ever and they may not be famous tomorrow.
(3) What personal finance lessons do you think the rest of us can take away from the way famous people live their lives?
Jo: Budgeting for a rainy day is the best thing we can learn from celebrities in terms of personal finance. I saw so many cases of celebs who thought it would last forever and then forever came up really... quick.
I was inspired by the extent to which celebs expand their personal brands. Tim McGraw went from country singer to fragrance king. When Valerie Bertinelli's career as an actress seemed like it was over she reinvented herself through a weight loss campaign. I don't think we see these instances of celeb entrepreneurship as inspiring enough and I truly think they should be a lesson in taking chances, building a new business and making lemonade out of lemons.
In many ways our celebrity culture is like a group of chaotic drunk people. It lurches rapidly from one topic and fad to the next. In the heat of the excitement money can feel like no object. But the financial hangover of being, or trying to emulate, that lifestyle can result in a serious financial crash.
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Rate on 30-year mortgage ticks up to 4 pct.

The average rate on the 30-year mortgage stayed hovered above the record low for a third straight week. But cheap mortgage rates have done little to boost home sales or refinancing.
Freddie Mac said Thursday that the rate on the 30-year loan ticked up to 4 percent from 3.99 percent. Six weeks ago, it dropped to a record low of 3.94 percent, according to the National Bureau of Economic Research.
The average rate on the 15-year fixed mortgage rose to 3.31 percent from 3.30 percent. Six weeks ago, it hit a record low of 3.26 percent.
Rates have been below 5 percent for all but two weeks this year. Yet this year could be the worst for home sales in 14 years.
Mortgage applications fell 10 percent this week from the previous week, according to the Mortgage Bankers Association.
High unemployment and scant wage gains have made it harder for many people to qualify for loans. Many Americans don't want to sink money into a home that could lose value over the next three to four years. And most homeowners who can afford to refinance already have.
The low rates have caused a modest boom in refinancing, but that benefit might be wearing off. Most people who can afford to refinance have already locked in rates below 5 percent. Refinancing fell 12.2 percent last week, according to the mortgage bankers group.
The average rates don't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fees for the 30-year and 15-year fixed mortgages were unchanged at 0.7.
The average rate on the five-year adjustable loan fell to 2.97 percent from 2.98 percent. The average rate on the one-year adjustable loan increased to 2.98 percent from 2.95 percent.
The average fees on the five-year and one-year adjustable loans were both unchanged at 0.6.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.
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Rate on 30-year mortgage ticks up to 4 percent

The average rate on the 30-year mortgage hovered above the record low for a third straight week. But cheap mortgage rates have done little to boost home sales or refinancing.
Freddie Mac said Thursday that the rate on the 30-year loan ticked up to 4 percent from 3.99 percent. Six weeks ago, it dropped to a record low of 3.94 percent, according to the National Bureau of Economic Research.
The average rate on the 15-year fixed mortgage rose to 3.31 percent from 3.30 percent. Six weeks ago, it hit a record low of 3.26 percent.
Rates have been below 5 percent for all but two weeks this year. Yet this year could be the worst for home sales in 14 years.
Mortgage applications fell 10 percent this week from the previous week, according to the Mortgage Bankers Association.
High unemployment and scant wage gains have made it harder for many people to qualify for loans. Many Americans don't want to sink money into a home that could lose value over the next three to four years. And most homeowners who can afford to refinance already have.
The low rates have caused a modest boom in refinancing, but that benefit might be wearing off. Most people who can afford to refinance have already locked in rates below 5 percent. Refinancing fell 12.2 percent last week, according to the mortgage bankers group.
The average rates don't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fees for the 30-year and 15-year fixed mortgages were unchanged at 0.7.
The average rate on the five-year adjustable loan fell to 2.97 percent from 2.98 percent. The average rate on the one-year adjustable loan increased to 2.98 percent from 2.95 percent.
The average fees on the five-year and one-year adjustable loans were both unchanged at 0.6.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.
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Rate on 30-year fixed mortgage falls to 3.98 pct.

The average rate on the 30-year fixed mortgage hovered above its record low for a fourth straight week. But cheap mortgage rates have done little to boost home sales or refinancing.
Freddie Mac says the rate on the 30-year fixed loan fell to 3.98 percent from 4 percent the previous week. Seven weeks ago, it dropped to a record low of 3.94 percent, according to the National Bureau of Economic Research.
The average rate on the 15-year fixed mortgage edged down to 3.3 percent from 3.31 percent. Seven weeks ago, it too hit a record low of 3.26 percent.
Rates have been below 5 percent for all but two weeks this year. Yet this year could be the worst for home sales in 14 years.
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U.S. Housing Market Still On Life Support

With each passing year, the former Oracle of the Fed, Alan Greenspan, is reminded that there really was a housing bubble and lowering interest rates to record lows just matters worse.  Nearly four years after the housing market peak in 2007, record low mortgage rates are no match for falling incomes and 9% unemployment.
The Case-Shiller Home Price Index, released on Tuesday, showed that nation wide home prices did not register a significant change in the third quarter of 2011, with the U.S. National Home Price Index up by only 0.1% from its second quarter level. Home prices are down 3.9% across the board and are now back to their first quarter of 2003 levels.
From August to September, housing prices have fallen the most in Atlanta, with a 5.9% decline, followed by Tampa Bay and San Francisco, both with a 1.5% drop in housing prices.
Boston, New York, Washington and Los Angeles remain the most expensive cities in the lower 48 states.
"The plunging collapse of prices seen in 2007-2009 seems to be behind us," says David M. Blitzer, Chairman of the Index Committee at S&P Indices. "Any chance for a sustained recovery will probably need a stronger economy."
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