A look at the stories on HousingWire’s weekend desk…with more coverage to come on bigger issues: According to John Burns Real Estate Consulting, existing home sales volumes are off 30% from the peak and have returned to 1998 levels. Perhaps even more worrying, the research states that existing sales volumes are driven by government initiatives, such as the expanded tax credit, aggressive FHA lending, Freddie and Fannie bailout, and Fed mortgage rate intervention. Additionally, investor activity now exceeds 2005 levels as a percent of total activity. “In other words, there would be far fewer home buyers today (just as there was in 1968-70, 1973-75, 1981-83 and 1990-92) and house prices would be falling even further,” states the research. “Therefore, if you run a business that is tied to housing, pay far more attention than usual to what is going on in Washington D.C. as it is likely to determine the health of your business in 2010.” In other research, PMI does not expect an additional downturn in the US economy in the New Year:

Real GDP growth was revised downward a bit to 2.8% for the third quarter (about where we projected it two months ago). Beyond this, however, most of the economic news was supportive of faster growth going forward. The job market in particular, while still declining, appears poised to start growing again soon. Ultimately, it will be job growth that will allow the recovery to unfold without government assistance, and to allow households to increase both savings and spending – necessary ingredients for a sustained and healthy economic expansion. Additionally, it appears as if the large inventory cuts by businesses may be done – which suggests that production will rise further in coming months.

More from HousingWire to come today… so check back regularly. The Federal Deposit Insurance Corporation (FDIC) created a ‘bridge bank’ to take over the operations of Independent Bankers’ Bank of Springfield, Illinois, after the bank was closed at close of business Friday by the Illinois Department of Financial and Professional Regulation—Division of Banking. The newly created bank, which is a federally-run entity in which the government assumes the assets and liabilities (in this case, $585.5m in assets and $511.5m in deposits) of the receivership will be called Independent Bankers’ Bank Bridge Bank, National Association. The FDIC explains the decision: “The creation of the bridge bank allows the client banks to maintain their correspondent banking relationship with the least amount of disruption.” The same holds true for customers of the much larger Imperial Capital Bank of La Jolla, California, They will see their branches open as City National Bank which will assume the failed bank’s $4bn in total assets and $2.8bn in total deposits. In addition, federal regulators closed another five banks, rounding out the total to 140 for 2009. This morning, customers of the First Federal Bank of California will see their branches open as OneWest Bank which will assume the failed bank’s $6.1bn in total assets and $4.5bn in total deposits. OneWest is also suspending foreclosures until January 4, 2009, in unrelated news. New South Federal Savings Bank of Alabama, was closed today by the Office of Thrift Supervision. To protect the depositors, the FDIC entered into a purchase and assumption agreement for $1.5bn in total assets and $1.2bn in total deposits with Beal Bank of Plano, Texas. In a similar arrangement, Peoples First Community Bank, of Florida is being taken over by Hancock Bank of Mississippi, in order to assume its $1.8bn in total assets and $1.7bn in deposits. Rockbridge Commercial Bank of Atlanta also closed with $294m in total assets and $291.7m in total deposits. The FDIC could not source an interested take over partner, and will so start paying out deposits in due time, once reviewed to insure an individuals deposit does not exceed the $250,000 insured limit. “Customers who placed money with brokers should contact them directly for more information about the status of their funds,” the FDIC states. Finally, Huntington National Bank took over operation of Citizens State Bank of MI and its $168.6m in assets and $157.1m and deposits.