"Existing home sales increased last month as buyers responded to improved housing affordability conditions, according to the National Association of REALTORS. Existing home sales...rose 5.5 percent to a seasonally adjusted annual rate of 5.18 million units in September from a level of 4.91 million in August, and are 1.4 percent higher than the 5.11 million unit pace in September 2007. Lawrence Yun, NAR chief economist, said more markets are seeing year-over-year gains. 'The sales turnaround that began in California several months ago is broadening now to Colorado, Kansas, Minnesota, Missouri and Rhode Island,' he said."
--"Existing Home Sales Rise on Improved Affordability," News release issued by the National Association of REALTORS, Oct. 24, 2008
Wednesday, October 29, 2008
MAAR Article on Minneapolis Real Estate Market
MAAR: Pending and Closed Sales Increased
Dramatically in September
The Twin Cities recently got some good news
about the housing market. The Minneapolis Area
Association of REALTORS® (MAAR) reported that
both pending and closed sales increased significantly
in September.
MAAR reported that there were 4,036 pending
sales in September 2008—a 42.2 percent increase
over September 2007’s number of 2,839. This
was the highest year-over-year pending sales increase
since March 1998 when the increase over
March 1997 was 38.6 percent.
MAAR said that closed sales also increased dramatically
in September 2008—34.9 percent higher
than September 2007.
Kevin Knudsen, MAAR president and branch
vice president of Coldwell Banker Burnet’s Minneapolis
South office, said, “There are some incredible
buying opportunities out there and this
is the surest sign yet.”
In addition, MAAR reported that the October 2008
Housing Affordability Index jumped to 159—21.4
percent higher than October 2007. This means
that housing is even more accessible for the average
home buyer in the local market.
Steve Havig, MAAR president-elect, said, “It’s
hard to predict now if the sales upturn will continue.
But affordability and inventory are still
very attractive, and that bodes well for our
long-term picture.”
Dramatically in September
The Twin Cities recently got some good news
about the housing market. The Minneapolis Area
Association of REALTORS® (MAAR) reported that
both pending and closed sales increased significantly
in September.
MAAR reported that there were 4,036 pending
sales in September 2008—a 42.2 percent increase
over September 2007’s number of 2,839. This
was the highest year-over-year pending sales increase
since March 1998 when the increase over
March 1997 was 38.6 percent.
MAAR said that closed sales also increased dramatically
in September 2008—34.9 percent higher
than September 2007.
Kevin Knudsen, MAAR president and branch
vice president of Coldwell Banker Burnet’s Minneapolis
South office, said, “There are some incredible
buying opportunities out there and this
is the surest sign yet.”
In addition, MAAR reported that the October 2008
Housing Affordability Index jumped to 159—21.4
percent higher than October 2007. This means
that housing is even more accessible for the average
home buyer in the local market.
Steve Havig, MAAR president-elect, said, “It’s
hard to predict now if the sales upturn will continue.
But affordability and inventory are still
very attractive, and that bodes well for our
long-term picture.”
Tuesday, October 28, 2008
Existing Home Sales Up 3.1% / Lawrence Yun
This was done back in Aug, but I thought it was good. For more recent info see two links below (The Skinny)......
Monday, October 27, 2008
Friday, October 24, 2008
My New Listing In Minnetrista
$769,000
That’s right just $769,000 for 47 acres in Minnetrista
This home is perfect for your pickiest horse lover or that buyer who has always dreamed of living a pampered country estate lifestyle. The 47 acres alone is worth the price. Many modern amenities: In ground sprinkler system, surround sound throughout the home and outside, sauna, breathtaking hardwood floors, heated tile floors, executive style kitchen, and a home security system to protect it all. Multiple outbuildings as well. Sellers are very motivated, so make your best offer now.
Click Here To See The Listing
Benjamin Kruse, GRI
Plymouth Regional Office
612-237-6853
SanctuaryRealtyGroup.Com
47 Acre Country Estate in Minnetrista for Just $769,000. The land alone in worth the price.
That’s right just $769,000 for 47 acres in Minnetrista
This home is perfect for your pickiest horse lover or that buyer who has always dreamed of living a pampered country estate lifestyle. The 47 acres alone is worth the price. Many modern amenities: In ground sprinkler system, surround sound throughout the home and outside, sauna, breathtaking hardwood floors, heated tile floors, executive style kitchen, and a home security system to protect it all. Multiple outbuildings as well. Sellers are very motivated, so make your best offer now.
Click Here To See The Listing
Benjamin Kruse, GRI
Plymouth Regional Office
612-237-6853
SanctuaryRealtyGroup.Com
47 Acre Country Estate in Minnetrista for Just $769,000. The land alone in worth the price.
Top 10 Winter Energy Savings Tips
Here are are some great winter energy savings tips I found on the Xcel Energy webpage. Hope you find some of them helpful.
Top 10 Winter Energy Savings Tips
Reward yourself and save energy while maintaining your home comfort-level. If these are things you do already, challenge yourself to take the next step. The following are 10 easy tips that are divided among “no-cost, low-cost, and ‘go-big’ (investment)” decisions. So, go on, give them a try!
No Cost
1. Set your water heater to 120°.
It’s simple. Your hot water heater won’t have to work so hard if it’s set at a lower temperature. The temperature control settings on water heaters either indicate “low, medium, and high” or actual temperature settings. Simply consider turning down your water heater to a slightly cooler setting to reduce the amount of energy used to heat the water while still keeping the water warm enough for home use. In fact, each time you lower the temperature by 10°F you’ll save 3–5% on your water heating costs. That’s a savings of $6-$10 a year. *
2. In the winter, to make the most of what Mother Nature gives us—sunlight
Open drapes on south-facing windows to warm your home. Consider closing drapes in rooms that receive no direct sunlight to insulate from cold window drafts. At night, close drapes to retain heat. Up to 15% of your heat can escape through unprotected windows, but the solar heat gain from the sun during the day can conserve valuable energy.
3. Start by setting your thermostat to 68°
Your heating system will operate less and use less energy. Turn your thermostat down 5° at night or when leaving your home for an hour or more to save up to $70 on energy costs each year.**
4. If you have a clothes washing machine, use cold water.
Washing clothes in cold water will save you about $40 a year.
Low Cost
5. Replace your furnace or heat pump filter regularly.
Dirty filters reduce airflow, making your equipment work harder and use more energy. Replace your furnace filter monthly (unless it is a high efficiency filter designed to last several months) during the heating season to reduce heating costs by up to $35 a year.
6. Install a programmable thermostat.
It’s a cinch. A programmable thermostat automatically adjusts your home's temperature settings when you're sleeping or away. Using a programmable thermostat can save you as much as 10%, or $70 a year.
7. Install low-flow showerheads and faucets.
It really helps! 1.8 gallon per minute showerheads can reduce your hot water consumption by as much as 10%. You’ll see savings up to $6 per year for a sink faucet aerator and $20 per year for a showerhead.
8. Switch to compact fluorescent light (CFL) bulbs.
They cost a little more, but you can save about $50 over the life of just one bulb.
Go Big
9. Weatherize and insulate older homes.
This saves up to 20% of your heating and cooling costs. A handy homeowner can seal up holes to the outside by weather-stripping doors and sealing windows and gaps along the home’s foundation. The easiest and most cost-effective way to insulate your home is to add insulation in the attic. Other effective places to add insulation include unfinished basement walls and crawlspaces. Insulating walls can be more complex, so check with a contractor for advice. The average home can see a savings of $140 a year.
10. Purchase ENERGY STAR® appliances.
A smart choice. Appliances and electronics really contribute to your energy bill. When it is time to replace, remember items like refrigerators, washers, TVs and computers have two price tags--purchase price and lifetime energy cost. According to ENERGY STAR, the average homeowner spends about $2,000 on energy bills every year. Change to appliances that have earned the ENERGY STAR rating, and you can save $75 a year in energy costs, while saving the environment.
Top 10 Winter Energy Savings Tips
Reward yourself and save energy while maintaining your home comfort-level. If these are things you do already, challenge yourself to take the next step. The following are 10 easy tips that are divided among “no-cost, low-cost, and ‘go-big’ (investment)” decisions. So, go on, give them a try!
No Cost
1. Set your water heater to 120°.
It’s simple. Your hot water heater won’t have to work so hard if it’s set at a lower temperature. The temperature control settings on water heaters either indicate “low, medium, and high” or actual temperature settings. Simply consider turning down your water heater to a slightly cooler setting to reduce the amount of energy used to heat the water while still keeping the water warm enough for home use. In fact, each time you lower the temperature by 10°F you’ll save 3–5% on your water heating costs. That’s a savings of $6-$10 a year. *
2. In the winter, to make the most of what Mother Nature gives us—sunlight
Open drapes on south-facing windows to warm your home. Consider closing drapes in rooms that receive no direct sunlight to insulate from cold window drafts. At night, close drapes to retain heat. Up to 15% of your heat can escape through unprotected windows, but the solar heat gain from the sun during the day can conserve valuable energy.
3. Start by setting your thermostat to 68°
Your heating system will operate less and use less energy. Turn your thermostat down 5° at night or when leaving your home for an hour or more to save up to $70 on energy costs each year.**
4. If you have a clothes washing machine, use cold water.
Washing clothes in cold water will save you about $40 a year.
Low Cost
5. Replace your furnace or heat pump filter regularly.
Dirty filters reduce airflow, making your equipment work harder and use more energy. Replace your furnace filter monthly (unless it is a high efficiency filter designed to last several months) during the heating season to reduce heating costs by up to $35 a year.
6. Install a programmable thermostat.
It’s a cinch. A programmable thermostat automatically adjusts your home's temperature settings when you're sleeping or away. Using a programmable thermostat can save you as much as 10%, or $70 a year.
7. Install low-flow showerheads and faucets.
It really helps! 1.8 gallon per minute showerheads can reduce your hot water consumption by as much as 10%. You’ll see savings up to $6 per year for a sink faucet aerator and $20 per year for a showerhead.
8. Switch to compact fluorescent light (CFL) bulbs.
They cost a little more, but you can save about $50 over the life of just one bulb.
Go Big
9. Weatherize and insulate older homes.
This saves up to 20% of your heating and cooling costs. A handy homeowner can seal up holes to the outside by weather-stripping doors and sealing windows and gaps along the home’s foundation. The easiest and most cost-effective way to insulate your home is to add insulation in the attic. Other effective places to add insulation include unfinished basement walls and crawlspaces. Insulating walls can be more complex, so check with a contractor for advice. The average home can see a savings of $140 a year.
10. Purchase ENERGY STAR® appliances.
A smart choice. Appliances and electronics really contribute to your energy bill. When it is time to replace, remember items like refrigerators, washers, TVs and computers have two price tags--purchase price and lifetime energy cost. According to ENERGY STAR, the average homeowner spends about $2,000 on energy bills every year. Change to appliances that have earned the ENERGY STAR rating, and you can save $75 a year in energy costs, while saving the environment.
Tuesday, October 21, 2008
The Real Story About the Availability of Mortgage Money
Great article from one of my lenders....
The Real Story About the Availability of
Mortgage Money
By Mary Baymler, President, Burnet Home Loans
I am sure that you have recently had as many questions
as I regarding the availability of mortgage
money. The current economic crisis has led many
in the public to worry about whether or not mortgage
money is even available should they choose
to buy a house. Statements from government and
commentary by the media have certainly played a
part in creating this perception.
So, what is the real story? Here at PHH Home Loans
it continues to be business as usual. Perhaps, because
that statement is so ordinary, it gets overlooked.
I would like to give you the facts so that
you can share them with your customers.
First, frankly we have access to more funds to lend
than we can actually use! Our warehouse facility
has a $350 million capacity. Given that most loans
cycle through the warehouse in 15 days, our group
effectively has access to $700 million a month! This
morning we were only using a fraction of the line.
I would say we have access to plenty of credit.
Second, mortgage product is widely available. So
far this year, we have sold loans to 21 different
state and national investors. Within our investor
group we still have more than 450 products to offer.
Furthermore, we constantly seek out new investors
and, just as importantly, they seek us out
to sell their product! It is important to remember
that we have the best mortgage customers
around, the purchase money borrowers who come
through Coldwell Banker’s doors every day. Our
investors recognize this fact and want to do business
with us.
Third, borrowers can still qualify for a loan. It is
absolutely true that today’s underwriting standards
are now stricter than those of the recent past.
However, that is a good thing for our industry. Borrowers
should be able to document their income,
their assets and prove that they are credit worthy.
Old fashioned? Perhaps, but it is certainly prudent.
Furthermore, PHH Home Loans was never a major
player in the sub-prime market. In 2005 when
things were getting rather wild and crazy, PHH
Home Loans did just 3.5 percent of our closed loan
volume in this category. It was never our stock in
trade and this has served us, and our parent company,
quite well. The marketplace is littered with
the wreckage of companies who choose the subprime
path.
Finally, as you know, this last weekend wrapped up
Coldwell Banker’s 10-Day Sales Event. This was a
tremendous opportunity for the consumer to get
into a new house. This is all the more true because,
as you know, interest rates have been moving
up for the last several weeks. It will certainly
do the consumer little good to hold out for that
last $5,000.00 on the sales price and then have to
pay a half percent or more on their interest rate
for the next 30 years. This may well be the best
time to buy!
As always, if you have questions, please consult
your Burnet Home Loans loan officer.
The Real Story About the Availability of
Mortgage Money
By Mary Baymler, President, Burnet Home Loans
I am sure that you have recently had as many questions
as I regarding the availability of mortgage
money. The current economic crisis has led many
in the public to worry about whether or not mortgage
money is even available should they choose
to buy a house. Statements from government and
commentary by the media have certainly played a
part in creating this perception.
So, what is the real story? Here at PHH Home Loans
it continues to be business as usual. Perhaps, because
that statement is so ordinary, it gets overlooked.
I would like to give you the facts so that
you can share them with your customers.
First, frankly we have access to more funds to lend
than we can actually use! Our warehouse facility
has a $350 million capacity. Given that most loans
cycle through the warehouse in 15 days, our group
effectively has access to $700 million a month! This
morning we were only using a fraction of the line.
I would say we have access to plenty of credit.
Second, mortgage product is widely available. So
far this year, we have sold loans to 21 different
state and national investors. Within our investor
group we still have more than 450 products to offer.
Furthermore, we constantly seek out new investors
and, just as importantly, they seek us out
to sell their product! It is important to remember
that we have the best mortgage customers
around, the purchase money borrowers who come
through Coldwell Banker’s doors every day. Our
investors recognize this fact and want to do business
with us.
Third, borrowers can still qualify for a loan. It is
absolutely true that today’s underwriting standards
are now stricter than those of the recent past.
However, that is a good thing for our industry. Borrowers
should be able to document their income,
their assets and prove that they are credit worthy.
Old fashioned? Perhaps, but it is certainly prudent.
Furthermore, PHH Home Loans was never a major
player in the sub-prime market. In 2005 when
things were getting rather wild and crazy, PHH
Home Loans did just 3.5 percent of our closed loan
volume in this category. It was never our stock in
trade and this has served us, and our parent company,
quite well. The marketplace is littered with
the wreckage of companies who choose the subprime
path.
Finally, as you know, this last weekend wrapped up
Coldwell Banker’s 10-Day Sales Event. This was a
tremendous opportunity for the consumer to get
into a new house. This is all the more true because,
as you know, interest rates have been moving
up for the last several weeks. It will certainly
do the consumer little good to hold out for that
last $5,000.00 on the sales price and then have to
pay a half percent or more on their interest rate
for the next 30 years. This may well be the best
time to buy!
As always, if you have questions, please consult
your Burnet Home Loans loan officer.
Wednesday, October 15, 2008
Case-Shiller on Twin Cities Real Estate Market
New Case-Shiller Report Brings Good News
About Twin Cities Home Prices; MAAR Reports
Increases in Home Sales
In the middle of the current financial turmoil,
Standard & Poor’s Case-Shiller Report
has some good news regarding home prices in
the Twin Cities.
The Case-Shiller report, which was released
Sept. 30, notes that home prices in the Twin Cities
rose for two consecutive months this summer.
From May to June, prices rose 0.9 percent,
and from June to July, prices rose 1.3 percent—
the largest increase of all 20 metropolitan areas
surveyed in the report.
In other good news, the Minneapolis Area Association
of REALTORS® (MAAR) has been reporting
an increase in home sales in the metro area over
the summer and early fall, and in some cases dramatic
increases. MAAR just reported that there
were 4,036 pending sales during the month of
September 2008—a 42.2 percent increase over
September 2007’s number of 2,839. MAAR said
that closed sales also increased dramatically—
34.9 percent higher than in September 2007. In
addition, MAAR reported that the October 2008
Housing Affordability Index jumped to 159—21.4
percent higher than October 2007.
The Case-Shiller Report reviews home prices in
the 20 largest U.S. metropolitan areas. The report
is based on thousands of repeat sales of
the same single-family houses. The MAAR report
studies the median sale prices of all singlefamily
homes, condominiums, and townhomes
on the Regional Multiple Listing Service that sold
during a specific period.
About Twin Cities Home Prices; MAAR Reports
Increases in Home Sales
In the middle of the current financial turmoil,
Standard & Poor’s Case-Shiller Report
has some good news regarding home prices in
the Twin Cities.
The Case-Shiller report, which was released
Sept. 30, notes that home prices in the Twin Cities
rose for two consecutive months this summer.
From May to June, prices rose 0.9 percent,
and from June to July, prices rose 1.3 percent—
the largest increase of all 20 metropolitan areas
surveyed in the report.
In other good news, the Minneapolis Area Association
of REALTORS® (MAAR) has been reporting
an increase in home sales in the metro area over
the summer and early fall, and in some cases dramatic
increases. MAAR just reported that there
were 4,036 pending sales during the month of
September 2008—a 42.2 percent increase over
September 2007’s number of 2,839. MAAR said
that closed sales also increased dramatically—
34.9 percent higher than in September 2007. In
addition, MAAR reported that the October 2008
Housing Affordability Index jumped to 159—21.4
percent higher than October 2007.
The Case-Shiller Report reviews home prices in
the 20 largest U.S. metropolitan areas. The report
is based on thousands of repeat sales of
the same single-family houses. The MAAR report
studies the median sale prices of all singlefamily
homes, condominiums, and townhomes
on the Regional Multiple Listing Service that sold
during a specific period.
Tuesday, October 14, 2008
MAAR Press Release
Pending sales skyrocket over 40 percent as prices decline
Minneapolis, Minnesota (October 10, 2008) – Buyers flocked to the Twin Cities housing market in September to take advantage of attractive home prices and a sunsetting federal loan program, according to the Minneapolis Area Association of REALTORS® (MAAR) based on data from the Regional Multiple Listing Service of Minnesota, Inc.
There were 4,036 pending sales in September, which represented a whopping 42.2 percent increase over September 2007's mark of 2,839. Closed sales, too, were up dramatically—34.9 percent higher for the same time period comparison. The last time there was a year-over-year pending sales increase even close to this large was in March of 1998 when the increase over March of 1997 was 38.6 percent.
"There really are some incredible buying opportunities out there and this is the surest sign yet," said Kevin Knudsen, MAAR President. "But we also need to keep in mind that September of last year was extremely slow, which makes these figures pop a little more."
Also adding to the influx of September buyers was "last call" activity before the October 1 dissolution of the FHA-sponsored seller-funded downpayment assistance program, which was the last of a dying breed of zero-down loan programs remaining on the market.
A hearty 41.6 percent of September's pending sales were lender-mediated foreclosures and short sales, up from 17.5 percent in September 2007. The increased market share of these bargain-priced properties led to further declines in home prices. The overall September median sales price of $189,900 fell from last year by 15.6 percent. Lender-mediated homes posted a median sales price of $146,000, a decrease of 11.5 percent from last year. Traditional properties had a September median sales price of $212,500, a decrease of 8.6 percent.
Due to the decline in home prices and another downtick in mortgage rates, the October Housing Affordability Index jettisoned upward from last month to 159, which is 21.4 percent higher than this time last year, and back up at extremely healthy levels following a few years of unsustainably low affordability. While challenging for sellers, this means a more accessible market for potential home buyers, thus the resurgence in sales activity.
"With all the uncertainties in the economy, it's hard to predict right now if the sales upturn will continue," said Steve Havig, MAAR President-Elect. "But the affordability and inventory choice picture is still very attractive, which bodes well for our long-term picture."
Minneapolis, Minnesota (October 10, 2008) – Buyers flocked to the Twin Cities housing market in September to take advantage of attractive home prices and a sunsetting federal loan program, according to the Minneapolis Area Association of REALTORS® (MAAR) based on data from the Regional Multiple Listing Service of Minnesota, Inc.
There were 4,036 pending sales in September, which represented a whopping 42.2 percent increase over September 2007's mark of 2,839. Closed sales, too, were up dramatically—34.9 percent higher for the same time period comparison. The last time there was a year-over-year pending sales increase even close to this large was in March of 1998 when the increase over March of 1997 was 38.6 percent.
"There really are some incredible buying opportunities out there and this is the surest sign yet," said Kevin Knudsen, MAAR President. "But we also need to keep in mind that September of last year was extremely slow, which makes these figures pop a little more."
Also adding to the influx of September buyers was "last call" activity before the October 1 dissolution of the FHA-sponsored seller-funded downpayment assistance program, which was the last of a dying breed of zero-down loan programs remaining on the market.
A hearty 41.6 percent of September's pending sales were lender-mediated foreclosures and short sales, up from 17.5 percent in September 2007. The increased market share of these bargain-priced properties led to further declines in home prices. The overall September median sales price of $189,900 fell from last year by 15.6 percent. Lender-mediated homes posted a median sales price of $146,000, a decrease of 11.5 percent from last year. Traditional properties had a September median sales price of $212,500, a decrease of 8.6 percent.
Due to the decline in home prices and another downtick in mortgage rates, the October Housing Affordability Index jettisoned upward from last month to 159, which is 21.4 percent higher than this time last year, and back up at extremely healthy levels following a few years of unsustainably low affordability. While challenging for sellers, this means a more accessible market for potential home buyers, thus the resurgence in sales activity.
"With all the uncertainties in the economy, it's hard to predict right now if the sales upturn will continue," said Steve Havig, MAAR President-Elect. "But the affordability and inventory choice picture is still very attractive, which bodes well for our long-term picture."
Friday, October 10, 2008
Forrest Gump Explains Mortgage Backed Securities
Forrest Gump Explains Mortgage Backed Securities
Mortgage Backed Securities are like boxes of chocolates. Criminals on Wall Street stole a few chocolates from the boxes and replaced them with turds. Their criminal buddies at Standard & Poor rated these boxes AAA Investment Grade chocolates. These boxes were then sold all over the world to investors. Eventually somebody bites into a turd and discovers the crime. Suddenly nobody trusts American chocolates anymore worldwide.
Hank Paulson now wants the American taxpayers to buy up and hold all these boxes of turd-infested chocolates for $700 billion dollars until the market for turds returns to normal. Meanwhile, Hank's buddies, the Wall Street criminals who stole all the good chocolates are not being investigated, arrested, or indicted.
Mama always said: 'Sniff the chocolates first Forrest'.
Mortgage Backed Securities are like boxes of chocolates. Criminals on Wall Street stole a few chocolates from the boxes and replaced them with turds. Their criminal buddies at Standard & Poor rated these boxes AAA Investment Grade chocolates. These boxes were then sold all over the world to investors. Eventually somebody bites into a turd and discovers the crime. Suddenly nobody trusts American chocolates anymore worldwide.
Hank Paulson now wants the American taxpayers to buy up and hold all these boxes of turd-infested chocolates for $700 billion dollars until the market for turds returns to normal. Meanwhile, Hank's buddies, the Wall Street criminals who stole all the good chocolates are not being investigated, arrested, or indicted.
Mama always said: 'Sniff the chocolates first Forrest'.
Monday, October 6, 2008
Emergency Economic Stabilization Act of 2008 Signed
Emergency Economic Stabilization Act of 2008 Signed
On Friday, October 3, the U.S. House of Representatives voted 263 to 171 to enact the Emergency Economic Stabilization Act of 2008 into law. After being rejected earlier in the week, the legislation received a number of enhancements in the areas of consumer and taxpayer protection which made the bill more palatable for congressional leaders who were initially opposed to the bill.
"The vote on the bill reflects how many of you feel—torn. "We realize this bill is not perfect," said NAR President, Richard Gaylord. "However...the additions made by the Senate, including raising the FDIC insurance limit and several other measures that will benefit and protect taxpayers, make it a more favorable solution than the previous proposal. More importantly, failure to act would have pushed consumers into more dire circumstances."
Included in the revised bill language is an increase in the amount of deposit insurance provided by the Federal Deposit Insurance Corporation (FDIC), legislation that will shield many taxpayers from the ravages of the Alternative Minimum Tax (AMT), and strengthened directives to lenders to work with borrowers to prevent foreclosures and to provide timely responses to short sales. You can review the bill in more detail at the House Financial Services Committee website.
NAR will continue to make sure the measures included in this bill are implemented quickly and will provide updates and information at www.realtor.org/creditcrisis.
Source: National Association of REALTORS®
On Friday, October 3, the U.S. House of Representatives voted 263 to 171 to enact the Emergency Economic Stabilization Act of 2008 into law. After being rejected earlier in the week, the legislation received a number of enhancements in the areas of consumer and taxpayer protection which made the bill more palatable for congressional leaders who were initially opposed to the bill.
"The vote on the bill reflects how many of you feel—torn. "We realize this bill is not perfect," said NAR President, Richard Gaylord. "However...the additions made by the Senate, including raising the FDIC insurance limit and several other measures that will benefit and protect taxpayers, make it a more favorable solution than the previous proposal. More importantly, failure to act would have pushed consumers into more dire circumstances."
Included in the revised bill language is an increase in the amount of deposit insurance provided by the Federal Deposit Insurance Corporation (FDIC), legislation that will shield many taxpayers from the ravages of the Alternative Minimum Tax (AMT), and strengthened directives to lenders to work with borrowers to prevent foreclosures and to provide timely responses to short sales. You can review the bill in more detail at the House Financial Services Committee website.
NAR will continue to make sure the measures included in this bill are implemented quickly and will provide updates and information at www.realtor.org/creditcrisis.
Source: National Association of REALTORS®
Sunday, October 5, 2008
Congress Passes Rescue Plan
Here is an update I recieved from one of my lenders.
Mortgage Time
Mortgage Market News for the week ending October 3, 2008
Congress Passes Rescue Plan
All eyes were on Congress this week as they debated the financial rescue plan. Fed Chief Bernanke and Treasury Secretary Paulson proposed the $700 billion plan to purchase troubled mortgage assets from financial institutions, providing the institutions with much needed capital. The expectation is that the institutions will use the freed up capital to make credit more readily available. On Monday, the House unexpectedly voted against the plan, and the stock market plunged. A revised plan, which retained the core of the original plan, passed by a wide margin in the Senate on Wednesday and passed in the House on Friday. Despite the historic events this week, mortgage rates ended the week nearly unchanged.
In the shadow of the debate over the rescue plan, the economic data released during the week continued to highlight the weakness in the economy. The monthly Employment report showed that the economy lost -159K jobs in September, worse than the consensus forecast of -105K. The economy has lost jobs for nine straight months, which is the worst performance since the period following 9/11. The Unemployment Rate remained at 6.1%, which was up from 4.7% one year ago. Exports have been a source of strength this year, but economic weakness around the world has hurt in this area as well.
It is hoped that the rescue plan will be a strong first step in boosting the economy, and other actions are also expected to help. Falling oil prices and low wage inflation have eased inflationary pressures. This will allow the Fed more flexibility to cut rates and stimulate the economy. Investors have priced in a half-point cut in the Fed Funds rate by the end of the year.
Mortgage Time
Mortgage Market News for the week ending October 3, 2008
Congress Passes Rescue Plan
All eyes were on Congress this week as they debated the financial rescue plan. Fed Chief Bernanke and Treasury Secretary Paulson proposed the $700 billion plan to purchase troubled mortgage assets from financial institutions, providing the institutions with much needed capital. The expectation is that the institutions will use the freed up capital to make credit more readily available. On Monday, the House unexpectedly voted against the plan, and the stock market plunged. A revised plan, which retained the core of the original plan, passed by a wide margin in the Senate on Wednesday and passed in the House on Friday. Despite the historic events this week, mortgage rates ended the week nearly unchanged.
In the shadow of the debate over the rescue plan, the economic data released during the week continued to highlight the weakness in the economy. The monthly Employment report showed that the economy lost -159K jobs in September, worse than the consensus forecast of -105K. The economy has lost jobs for nine straight months, which is the worst performance since the period following 9/11. The Unemployment Rate remained at 6.1%, which was up from 4.7% one year ago. Exports have been a source of strength this year, but economic weakness around the world has hurt in this area as well.
It is hoped that the rescue plan will be a strong first step in boosting the economy, and other actions are also expected to help. Falling oil prices and low wage inflation have eased inflationary pressures. This will allow the Fed more flexibility to cut rates and stimulate the economy. Investors have priced in a half-point cut in the Fed Funds rate by the end of the year.
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