Mortgage Lending Rates Rise Slightly

30-Year Fixed Rates Rise Slightly Mortgage rates rose slightly in the latest week, with the average conforming 30-year fixed mortgage rate increasing to 6.74 percent.

According to Bankrate.com's weekly national survey of large lenders, the average 30-year fixed mortgage has an average of 0.38 discount and origination points.

The average 15-year fixed rate mortgage popular for refinancing rose to 6.27 percent, while the average jumbo 30-year fixed rate is now 7.68 percent. Adjustable mortgage rates were lower, with the average 1-year ARM dipping to 6.24 percent and the average 5/1 ARM down to 6.32 percent. Here’s another look at the latest figures:

*30-year fixed: 6.74%, up from 6.70% last week (avg. points: 0.38)
*15-year fixed: 6.27%, up from 6.22% last week (avg. points: 0.47)
*5/1 ARM: 6.32%, down from 6.35% last week (avg. points: 0.45)

Since posting a mighty advance two weeks ago, mortgage rates have settled into a range but have been bobbing up and down, with no clear direction. That was true this week, with mortgage rates pulling back due to disappointing economic growth and more job losses before moving up as the Fed indicated interest rates could be on hold for some period of time.

Another factor in higher mortgage rates has been the noticeably wider spread between benchmark Treasury yields and fixed mortgage rates. Spreads have expanded in recent weeks as investors fret about the quality of outstanding mortgage loans, commanding higher returns to compensate for the risk.

Mortgage rates have been on a wild ride since the beginning of the year. The average 30-year fixed mortgage rate was as low as 5.57 percent in January, meaning that a $200,000 loan would have carried a monthly payment of $1,144.38. But at today's rate of 6.74 percent, a $200,000 loan would mean a monthly payment of $1,295.87.

Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.

The survey is complemented by Bankrate's weekly forward-looking Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next 30 to 45 days. This week, a majority of panelists, 71 percent, expect mortgage rates to continue climbing. Chances of a decline look slim, with only 21 percent voting that way. Just 8 percent forecast that rates will remain more or less unchanged in the next 30 to 45 days.

Source: Bankrate.com

This article is from Realtor Magazine Online Edition Daily Real Estate News for August 8, 2008

Market Perceptions, Realities Not in Sync

Home owners are quite aware of the slow housing market, but most of them don’t think the trend is affecting their property, according to recent survey of 1,361 home owners.

Harris Interactive conducted the Homeowner Confidence Survey on behalf of real estate Web site Zillow. Results show that nearly two out of three (62 percent) home owners think their home value has increased or remained the same in the past year.

However, 77 percent of U.S. homes lost value in the past 12 months, according to preliminary analysis of Zillow's Q2 Real Estate Market Reports, due to be released August 12. Only 19 percent of homes increased in value, and 5 percent remained the same.

Another interesting finding from the survey: Home owner’s optimism about real estate prices doesn't extend to neighboring homes, as 42 percent expect values in their local market to drop and 58 percent think values will increase or remain the same.

The survey underscores a wide gap between home owners' inflated perception of their home values and the market reality. To monitor this perception-reality gap over time, Zillow has created the Home Value Misperception Index, which is the difference between the adjusted percentage of home owners who believe their home value increased over the past year and the adjusted percentage of homes that have increased in value.

Nationwide, the second quarter Home Value Misperception Index is 32, reflecting this broad gap. Those in the West, which has the highest proportion of homes (88%) that declined in value during the quarter, seem to have the best grasp on reality with a Misperception Index of 23, while those in the South have the widest gap at 36.

“We attribute this gap to a combination of inattention and a fair bit of denial that causes people to believe their home is insulated from the woes of the market that affect others, but not them," said Dr. Stan Humphries, Zillow vice president of data and analytics.

Source: Zillow

This article is from Realtor Magazine Daily Real Estate News for August 8, 2008

Freddie Chief Keeps Expectations Low

U.S. home prices have only fallen about halfway and are likely to fall at least as much as they’ve fallen so far, says Richard Syron, CEO of Freddie Mac.

“We now believe that national home prices will fall 18 to 20 percent peak to trough," Syron told investors in a conference call. "

The long and short of it is that we now think that we are half-way through the overall peak-to-trough decline." Syron also said, “Today's challenging economic environment suggests that the housing market is far from stabilizing."

Source: Reuters News (08/06/2008)

This article is from Realtor Magazine Daily Real Estate News 8/7/08

Quote of the Week

"Ability is what you're capable of doing. Motivation determines what you do. Attitude determines how well you do it."

— Lou Holtz: Former football coach, author, motivational speaker

Cats- Yu Gotta Luv Em!

Awesome Acrobatic Display to be Part of Opening Ceremonies at 2008 Beijing Olympics

Click link below to view:

http://www.youtube.com/watch?v=KNK6jYvUw-Q

Vivaldi Updated

Fed Leaves Key Interest Rate Alone

The Federal Reserve yesterday left the key interest rate unchanged at 2 percent, while stressing in their post-meeting statement that they’re concerned about both the struggling economy and high inflation.

"Although downside risks to growth remain, the upside risks to inflation are also of significant concern," the Fed said.

Observers say that the Fed is unlikely to change the key rate this year. "They really went right down the middle," says U.S. Global Investors research director John Derrick. "They are basically in risk-assessment mode."

Source: The Wall Street Journal, (08/05/2008)

This article is from Realtor Magazine Online Edition Daily Real Estate News for August 6, 2008

Is The Housing Market Bailout By Taxpayers Fair?

Is it fair that prudent taxpayers and home owners should bail out people who borrowed foolishly and companies whose executives were responsible for the credit crunch?

The answer is “no,” but that doesn’t make the bailout a mistake, says Zvi Bodie, finance professor at Boston University. "My own view is that the world isn't fair," says Bodie. "But would it be fair to put the economy into a deep recession or depression? I don't think so.

"If the monetary and fiscal authorities are right in their judgment that the risk of an economic plunge of frightening proportions is real, then the actions they're taking are fair to all of us, Bodie contends.

The U.S. economy in 2008 — with a 5.7 percent unemployment rate and economy expanding at a 1.9 percent average annual rate — is far from Depression-era statistics and only time will tell whether monetary and fiscal authorities exercised sound judgment or panicked. In the meantime, history rewards the bold — not the timid — when the financial system is threatened with collapse, according to Bodie.

Source: Business Week. Chris Farrell (08/05/2008)

This article is from Realtor Magazine Online Edition Daily Real Estate News August 6, 2008

A Young Girl's Source of Inspiration...

NYSAR Quick Facts About Current Real Estate Market Conditions & Concerns

The following information is taken from a memo written by NYSAR President Linda Page on 8/4/08 concerning New York State June Housing Market Data:

Quick Facts

* June sales gains compared to May were reported in 35 of 58 counties for which NYSAR collects existing single-family home sales data.

* Thirty-four counties reported gains in median selling price in June 2008 compared to May 2008.

* According to the RealtyTrac June foreclosure activity report, New York ranked 32nd in the nation for number of foreclosures.

* A NYSAR-commissioned study of homeowners found the typical homeowner has been in their house for 7 years. The June 2001 statewide median sales price was $122,000, today it’s $219,000. While today’s sellers will not have the benefit of the high-demand, low inventory markets of 2004 to 2006, which inflated selling prices, they will still enjoy the benefits of increased equity and price appreciation when they sell.

* New York home buyers are recognizing the tremendous opportunities available to them in local markets throughout our state as evidenced by the increase in sales between May and June. Right now in communities across New York State, smart buyers are taking advantage of the choices available in every price range, and still low mortgage rates. They know that owning a home has a multitude of benefits including helping them build their personal wealth over the long term.

* The New York State Association of REALTORS® strongly supports the portion of Gov. Paterson’s Program Bill #62 that would cap the growth of school property tax levies at 4 percent or 120 percent of the Consumer Price Index (CPI), whichever is less. This tax cap proposal is a step in the right direction toward solving New York’s property tax crisis. New Yorkers clearly agree. A recent Siena College poll found that 69 percent of voters support of the governor’s property tax cap bill – regardless of political affiliation or geographic location.

* This tax relief issue has been thoroughly studied by the bi-partisan, blue-ribbon Commission on Property Tax Relief, which found the need for a school property tax cap, along with other proposals for stemming the tide of ever-rising property taxes. The school property tax cap proposal will help make homeownership more attainable and appealing by allowing people to afford to stay in New York State. Offering individuals and families the prospect of meaningful tax relief provides a tangible incentive to purchase a home and grow roots in New York, which will certainly pay lasting dividends.

* The housing stimulus bill passed by President Bush will go a long way to help stabilize the housing market and make the dream of homeownership more attainable for many Americans. In addition, more families will be able to refinance into safer, more affordable mortgages, in many cases helping those families avoid a devastating foreclosure.

Most Consumers Pleased With Real Estate Agent According to Survey

A survey published in the September issue of Consumer Reports shows that most consumers are pleased with the services of their real estate practitioner.

The survey of 9,141 readers who bought or sold a home (or tried to) found that 71 percent were very or completely satisfied with their practitioner, while only 12 percent said they were dissatisfied.

Practitioners with most of the larger real-estate chains and independent brokers earned reader scores of 79 or higher, which indicated that respondents found these professionals provide "very satisfying" service.

Eighty-six percent of those surveyed who put their homes on the market made a sale; only 8 percent of would-be sellers eventually gave up and took their homes off the market. (The rest were still trying to sell when the survey was completed.)

What Sellers Said

Eighty-two percent of respondents who sold with the help of a practitioner received $5,000 less, on average, than their original asking price.

Almost all of the 17 percent who sold their homes without professional help said they received about what they originally asked.

What Buyers Said

Sixty-six percent of Consumer Reports' readers who used a practitioner to help them buy a home paid an average of $5,000 less than the listing price, and the 34 percent of buyers who negotiated their own deals, without representation, paid close to the asking price.

Lower Commission = Happier Seller

The survey also found that many real estate professionals would negotiate commission rates if sellers haggle. Sellers who paid commission rates 3 percent or lower were just as satisfied with their brokers' performance as those who paid 6 percent or more, the survey reported.

Forty-six percent of sellers surveyed attempted to negotiate a lower commission rate. About 71 percent succeeded.

Source: Consumer Reports (08/04/2008)

This article is from REALTOR® Magazine Online Edition Daily Real estate News for August 5, 2008

Economists: Housing Declines to Remain Small

A team of economists who created a variety of forecasting models concludes that predictions of further large housing price declines are greatly overblown.

They point to the house price index of the Office of Federal Housing Enterprise as most reflective of reality. Its data reveals that only four states — Arizona, California, Florida, and Nevada — have had declines of more than 4 percent in home prices over the past year.

These economists, including professors from Columbia University and from the Center for Real Estate at Wichita State University in Kansas, discount more drastic figures from the Standard & Poor's/Case-Shiller housing price index. They say this index is faulty because it doesn’t include data from 13 states and offers only partial coverage of 29 others, making its results an inaccurate reflection of middle-market homeownership.

Using a model constructed from the OFHEO price index, foreclosures, home sales, permits and employment, the economic team concluded that declines in house prices are highly likely to remain small.

“Our analysis reveals, unsurprisingly, that foreclosures and home prices have negative effects on each other over time, but this does not imply a vicious cycle of collapsing prices. Our models predict that as foreclosures continue to climb in many states, house prices will remain flat or decline in those states — but will not collapse.“

One reason for this is that the effect of foreclosure shocks on house prices is small. Furthermore, other fundamental factors (such as employment growth and a slowing of the growth of the housing supply over the past year and a half) will cushion the impact of foreclosures,” the economic team said.

Source: The Washington Post, Charles W. Calomiris, Stanley D. Longhofer and William Miles (08/04/08)

This article is from REALTOR® Magazine Online Edition Daily Real Estate News for August 4, 2008

Fed Expected to Leave Rates Alone This Week

The Federal Reserve, which meets Tuesday, is widely expected to leave key interest rates at 2 percent, which would keep the prime-lending rate for consumers at 5 percent.

The Fed has signaled that its next move on rates is probably up, although the timing is unclear.

Charles Plosser, president of the Federal Reserve Bank of Philadelphia, last month said the Fed probably will need to boost rates "sooner rather than later" even if employment and financial conditions haven't revived.

Richard Fisher, president of the Federal Reserve Bank of Dallas, opposed the Fed's decision in June to leave rates unchanged. He said he preferred a rate increase then to fend off inflation.

Source: The Associated Press, Jeannine Aversa (08/03/08)

This article is from REALTOR® Magazine Online Edition Daily Real Estate News for August 4, 2008

How the New First-Time Buyer Tax Credit Works

Under the new housing bill, home buyers who have not owned a home in the last three years will be eligible for a tax credit equal to 10 percent of the property up to a maximum of $7,500.

Here’s how it works:

*The credit is $3,750 for married couples filing separately. Unmarried people who jointly purchase a home will be able to divide the $7,500 credit.

*This program is actually a loan, which home buyers must repay over 15 years at zero percent interest beginning in the second year after they purchase the home. A home buyer who qualified for the whole credit would pay $500 for 15 years or about $41.67 per month.

*The credit applies only to homes purchased on or after April 9, 2008, and before July 1, 2009.

*High-income home buyers don’t qualify: Eligibility begins phasing out for single filers with adjusted income of more than $75,000 and $150,000 for joint filers. It completely phases out at $95,000 for singles and $170,000 for married couples filing jointly.

Source: The Washington Post, Michelle Singletary (07/03/08)

This is an article from REALTOR® Magazine Online Edition Daily Real Estate News for August 4, 2008

The Worst Appears To Be Over. Here Are Reasons For Optimism

By Lawrence Yun

First, the good news: Home sales have stabilized over the last seven months and are expected to increase measurably in the rest of 2008. And the subprime lending crisis is almost past; the balance of this year will be about cleaning up that mess.

The bad news is that the current annualized sales pace of about 5 million existing homes is the lowest in 10 years. Luckily, the economy has over 10 million more jobs than 10 years ago, so sales should begin to grow later this year and continue into 2009, when sales should climb to 5.71 million units.

Prices also are expected to improve this year. Cities that performed evenly over the past few years like Cincinnati are likely to experience home price gains in the 20 percent to 30 percent range over the next five years, while formerly hot markets like Miami could see prices go up by as much as 50 percent during that period, after having adjusted downward this year.

These markets should get a boost from a more stable mortgage environment. FHA lending, which accounted for only 3 percent of loan originations in 2007, should grow to 10 percent in 2008 before reaching near-historic norms of 15 percent in 2009.

Higher conforming loan limits at Fannie Mae and Freddie Mac also are helping. With high-cost limits now at $729,750, interest rates on formerly jumbo-sized loans are easing.

Even borrowers with adjustable mortgages are in better shape, thanks to Fed rate cuts. Some adjustable loan borrowers might actually see their resets produce lower payments.

There are other reasons for optimism, including the home buyer tax credit that’s passed both the House and the Senate. It would give buyers an incentive to get off the fence.

So, even though we’re not out of the woods yet, by many signs we’ve put the worst behind us.

This article is from REALTOR® Magazine July 2008

Summary of Key Provisions of H.R. 3221 - The Housing Stimulus Bill Which Is Now Passed Into Law

H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23, 2008, by a vote of 272-152.

On Saturday, July 26, 2008, the Senate passed the bill by a vote of 72-13. The President signed the bill on July 30, 2008. The bill includes the following provisions:

*GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).

*FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).

*Homebuyer Tax Credit - a $7500 tax credit that would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).

*FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.

*Seller-funded downpayment assistance programs – codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.

*VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.

*Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year. This provision is effective from October 1, 2008 through September 30, 2009.

*GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.

*Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.

*National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.

*CDBG Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.

*LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.

*Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.

4 Types of Buyers - Do You Know How to Identify Them?

You can improve your sales by understanding buyers as fitting into four distinct personality types, says Bayham Consulting LLC President Alan Bayham.

Once you identify their type, you can customize your presentations to meet their stylistic preferences.

1. Direct Type Buyers have Type A personalities, are direct and in a hurry, and have no qualms about interrupting a presentation. Practitioners would be wise to allow this buyer to do the talking and avoid giving too many details because he or she will make a decision quickly.

2. Interpersonal Buyers are pleasant, excitable, and more focused on relationship building, making it important for practitioners to socialize and create a positive atmosphere without imposing hard restrictions.

3. The Safety or Status Quo Type Buyer is calm, listens to what the practitioner has to say, and asks questions; and practitioners should keep in mind that it is crucial for them to present the information slowly, inquire about the buyer's needs, offer support, and take a gradual approach to obtaining commitment.

4. The Contemplative Buyer does not like small talk, wanting as many details as possible and conducting his or her own research beforehand. Practitioners should be careful not to encroach on this buyer's personal space, be thorough in providing information and documentation, and be willing to wait for the buyer to make a decision.

Source: RIS Media (July 28, 2008)

This article is from REALTOR® Magazine Online edition Daily real Estate News for July 31, 2008

NYSAR President Urges NY Legislators to Return to Albany to Approve Governor's School Tax Cap Proposal

Statement from New York State Association of REALTORS President Linda J. Page

Today, New York’s 62,000 REALTORS call upon their representatives in the state Legislature to return to Albany for the purpose of providing relief to our state’s beleaguered homeowners who are being crushed by high property taxes. We urge them to approve Gov. David Paterson’s school property tax cap proposal as an important first step toward providing New Yorker’s with a decreased tax burden.

The preliminary report from the New York State Commission on Property Tax Relief found that New York State’s local taxes are the highest in America – 79 percent above the national average.

It also found: property tax levies in the Empire State are rising at more than twice the rate of inflation and salary growth; outside of New York City, 62 percent of property taxes are school taxes; and in terms of tax rate, nine of the 10 highest counties in the nation are in upstate New York.

The New York State Association of REALTORS strongly supports the portion of Gov. Paterson’s Program Bill #62 that would cap the growth of school property tax levies at 4 percent or 120 percent of the Consumer Price Index (CPI), whichever is less. This tax cap proposal is a step in the right direction toward solving New York’s property tax crisis. New Yorkers clearly agree. A recent Siena College poll found that 69 percent of voters support of the governor’s property tax cap bill – regardless of political affiliation or geographic location.

In addition to the highest property taxes in the nation, home buyers in New York State are also expected to pay the highest closing costs in the nation. Depending on where a homebuyer lives, as many as four separate state and local taxes may be imposed on the recording of a mortgage. Many of these closing costs are fixed and must be paid by low, moderate, and high income homebuyers alike.

The net result is that these combined taxes make homeownership unattainable for many who aspire to achieve the dream of owning a home. New York is competing with states to lure and retain a young and well-educated workforce, and losing the battle due in large part to the state’s regressive tax structure. According to statewide census data released in March 2007, New York was one of only four states that failed to grow in population since 2005, with 46 of New York’s 62 counties experiencing more people moving out during 2005 than moving in for a total one-year loss of 225,766.

This issue has been thoroughly studied by the bi-partisan, blue-ribbon Commission on Property Tax Relief, which also found the need for a school property tax cap, along with other proposals for stemming the tide of ever-rising property taxes.

Now, it is time for Albany lawmakers to enact structural reforms to the tax system that will foster tax savings to property owners. Every step the state takes toward lower homeownership taxes is a step toward increasing the state’s quality of life and economic vitality.

The school property tax cap proposal will help make homeownership more attainable and appealing by allowing people to afford to stay in New York State. Offering individuals and families the prospect of meaningful tax relief provides a tangible incentive to purchase a home and grow roots in New York, which will certainly pay lasting dividends.

New York’s REALTORS applaud the governor for his leadership on this issue, and urge our legislators to follow his lead.

Rates Drop Slightly on 30-Year Mortgages

Freddie Mac reports a decline in the 30-year fixed mortgage rate to 6.52 percent during the week ended July 31 from 6.63 percent the prior week, while the 15-year fixed mortgage rate dropped to 6.07 percent from 6.18 percent over the same time span.

Additionally, the five-year adjustable mortgage rate slipped to 6.07 percent from 6.16 percent, and the one-year ARM fell to 5.27 percent from 5.49 percent.

Analysts attribute the decrease in mortgage rates to the housing bill that recently was signed into law.

Source: Baltimore Sun (08/01/08)

This article is from REALTOR® Magazine Online Daily Real Estate News August 1, 2008

The Keystone Is Now In Place for The Housing Market Recovery: Banks to Get a Boost From FHA Refinancing

Analysts say the housing bailout is a good deal for banks.

"The banks should be thrilled with this," says John Vogel, professor of real estate at Dartmouth College's Tuck School of Business. "This is as good a deal as they were going to get."

Banks will lose roughly $25,000 per home owner by selling their mortgages to the Federal Housing Administration, compared to losing about $64,000 per home owner, on average, by allowing homes to foreclose, estimates Ladenburg Thalmann analyst Richard Bove.

In all, banks will save about $16 billion if they let home owners refinance into mortgages issued by the FHA, Bove says.

Citigroup Inc. said it expects to participate in the refinance program, but that "once the final regulations are available from the agencies, we will be better positioned to evaluate the scope of our participation," a Citigroup spokesman said in a statement.

Wachovia Corp. and Washington Mutual Inc. also expressed support for the plan. A Wachovia spokeswoman said the bank "agrees that enactment of this legislation will help to stabilize and strengthen the housing finance system." A WaMu spokeswoman said it believes "this legislation will provide additional tools and expanded options for borrowers and lenders in addressing troubled loans."

Source: The Associated Press, Madlen Read (07/28/08)

This article is from REALTOR® Magazine Online Edition Daily Real Estate News July 29, 2008

New-Home Sales, Prices Down in June

Sales of new single-family homes fell by 0.6 percent from May to June, the Commerce Department reported Friday.

Sales are 33 percent below a year ago and prices are down 2 percent.

"I'm surprised only that it's declined more in June over May," said Tim Eller, chief executive Centex Corp. in Dallas. "The markets are continuing to deteriorate and I think that's an illustration of that fact."

New home prices have fallen below those of existing homes in many areas this year, said Robert Curran, an analyst with Fitch Ratings.

Historically, new homes cost about 5 percent more than preowned homes, but aggressive discounting and incentives by builders during the housing downturn has closed that gap in many markets, making it tough on builders.

Source: The Associated Press, Tom Hays (07/25/2008)

This article is from REALTOR® Magazine Online Daily Real Estate News July 28 2008

President Signs Housing Rescue Bill Into Law

President George W. Bush signed into law a bipartisan housing stimulus bill Wednesday that is expected to bring greater stability to housing markets nationwide. The bill, strongly supported by the NATIONAL ASSOCIATION OF REALTORS®, will help some 400,000 home owners refinance into affordable, government backed loans and offer a temporary first-time home buyer tax credit, which is expected to serve as an attractive incentive to buyers and help reduce high inventories of unsold homes.

The temporary first-time home buyer tax credit would offer $7,500 for the purchase of any home and an be used for purchases between April 9, 2008, and July 1, 2009.

The bill — H.R. 3221, the Housing and Economic Recovery Act of 2008 — also includes reform of Fannie Mae and Freddie Mac, FHA modernization, and permanent increases in conforming and FHA loan limits.

"These are all designed to help the housing and mortgage industries and boost the U.S. economy," NAR President Dick Gaylord said in a statement. “NAR has been a leading advocate for many of these changes long before the current housing and economic downturn. We are pleased that the president and Congress worked together to enact meaningful legislation that protects and enables families in this country to continue to strive for and enjoy the dream of homeownership.”

Source: NAR, Associated Press (7/30/08)

This article is from REALTOR® Magazine Online Daily Real Estate News July 30, 2008