Mortgage rates hit record lows

The average rate on 30-year fixed-rate mortgages slid to 4.78% from 4.8% last week, tying the record low, mortgage company Freddie Mac said. Last year at this time, the average rate on a 30-year mortgage was 6.06%.

The average rate on a 15-year fixed-rate mortgage was 4.48% this week, unchanged for the third straight week. Five-year, adjustable-rate mortgages fell to 4.80% from 4.85% last week -- the lowest since Freddie Mac began tracking it in January 2005.

One-year, adjustable-rate mortgages fell to 4.77% from 4.82%.

REAL ESTATE

Mortgage rates hit record lows

These rates do not include add-on fees known as points. The nationwide fee averaged 0.7 of a point last week for every type of mortgage except the five-year adjustable-rate mortgage, which averaged 0.6 of a point.

COURTS

Mozilo case sent back to Florida

A federal court has ruled that Florida’s lawsuit against the former chief executive of Countrywide Financial Corp. should be tried in state court.

A federal court in California sent the state’s lawsuit against former CEO Angelo R. Mozilo back to Florida’s circuit court.

Countrywide was the nation’s largest mortgage lender before a surge in bad loans ravaged its business and it was purchased by Bank of America Corp.

The lawsuit accuses Mozilo of misleading borrowers and investors about the loans.

Mozilo has argued that the lawsuit was based on federal issues and has denied wrongdoing.

Banker accused of insider trading

Three San Francisco Bay area men have been charged with making $5.3 million from illegal insider stock trades.

A federal grand jury charged Maher Fayez Kara, 37; Mounir Fayez Kara, 48; and Emile Youssef Jilwan, 54, with a combined 38 counts of conspiracy, fraud and other charges.

The indictment says Maher Kara used his position as an investment banker at a Citigroup Inc. subsidiary to give the other men information on acquisitions and financing involving several biotechnology companies before the news was public.

They are accused of selling the stocks for a profit after the share prices increased following the public disclosures.

PHARMACEUTICALS

Schering stock sales get scrutiny

A suspicious surge in trading of Schering-Plough Corp. shares just before news of a merger deal with fellow drug maker Merck & Co. is being investigated by federal regulators, according to a published report.

The Securities and Exchange Commission is looking to see whether any trades were made by people with inside knowledge about the merger talks, unidentified people familiar with the situation told the Wall Street Journal.

Spokesmen at the SEC and both companies declined to comment.

LABOR

Wal-Mart staffers support union bill

Workers at Wal-Mart Stores Inc. went to the Capitol in Washington to urge passage of legislation that would make it easier for them to form a union.

The group of about 75 workers from 17 states, backed by the United Food and Commercial Workers and the labor federation Change to Win, said they are paid too little, offered healthcare that costs too much and stymied in efforts to unionize.

Wal-Mart opposes the legislation, known as the Employee Free Choice Act, which would let workers bypass an election and form a union if a majority sign cards requesting one.