IN BRIEF

NEW YORK

Apache Corp. planning to buy Mariner Energy for $2.7 billion

Apache Corp. said Thursday it will buy Mariner Energy Inc. for $2.7 billion, the oil and gas producer's second deal this week aimed at expanding its presence in the Gulf of Mexico.

By adding Mariner, Apache said it becomes the biggest of the "independent" petroleum producers, companies that hunt for oil but do not refine it into gasoline and other products. Other large independents include: Anadarko Petroleum Corp., Chesapeake Energy Corp., Devon Energy Corp., EOG Resources Inc. and XTO Energy Inc.

Apache will also become a major player in deepwater oil drilling -- a business that's becoming increasingly attractive as oil prices rise above $85 a barrel.

Apache's latest deal is a cash-and-stock offer for Mariner Energy worth about $26.22 per share, a premium of 45 percent over Wednesday's closing price. Apache, based in Houston, will also assume $1.2 billion of Mariner's debt.

The transaction is expected to be completed in the third quarter. It still must be approved by Mariner's shareholders.

LOS ANGELES

As buyers rush to use tax break, homebuilders' spirits improve

U.S. homebuilders are seeing a pickup in sales and customer traffic as homebuyers rush to qualify for tax incentives set to expire at the end of the month, and that's made them more optimistic.

The National Association of Home Builders said Thursday its housing market index, which tracks industry confidence, jumped four points this month to 19, the highest reading since September.

It's no coincidence that the last time builders felt this good about their business prospects there was another tax credit deadline looming that motivated buyers.

The tax credits -- $8,000 for new buyers and $6,500 for current owners -- expire at April 30. That, coupled with low mortgage interest rates have helped gin up sales for builders.

But when asked to look beyond this month, builders remain less hopeful, and with good reason.

Many economists contend the tax incentives are making more buyers pull the trigger now, so sales will drop in the second half of this year. In addition, high unemployment and tight mortgage lending continue to keep many buyers on the sidelines.

McLEAN, Va.

Rates on 30-year mortgages slip, remain above 5 percent

Rates for long-term mortgages dropped this week but still remained above 5 percent, Freddie Mac said Thursday.

The average rate on a 30-year fixed rate mortgage was 5.07 percent this week, down from 5.21 percent a week earlier, a survey by the mortgage financier Freddie Mac said. Last week's average rate for a 30-year fixed mortgage had been the highest since mid-August, when it was 5.29 percent.

This week, the average rate on a 15-year fixed-rate mortgage was 4.4 percent, down from 4.52 percent last week.