National Association of REALTORS®: NAR Hails Passage of Economic Stimulus Package to Help Jumpstart Housing Market
This past week, Congress passed the National Economic Stimulus Package that would help thousands of home owners, the real estate market, and overall
US economy. At the time of this posting, President Bush has not signed this package into law. However, it appears that he will do so in the very near future.
The National Association of REALTORS® (NAR) is pleased that both the Federal Housing Administration (FHA) and the Fannie Mae and Freddie Mac (GSE) loan limits have been increased.
These new limits will make it easier for those who want to own their own home and for those who currently own their own home keep their home; thus reducing the number of foreclosures nationwide.
These new limits should help jump start the financial markets by bringing more money into the nation’s mortgage market.
Renters & First-Time Homeowners - The Housing Market Needs You!
These additional incentives should also assist many renters and first-time homeowners to enter the real estate market.
There are many more sellers in this market than buyers.
Many of these sellers have found their next home of their dreams.
Unfortunately, these sellers are unable to make this move because they haven’t been successful in selling their home.
The real estate market is very much like falling dominos.
We’re looking for that someone special, a renter or first-time homebuyer, to start the domino-effect.
Here’s how the domino effect works…
The supply of real estate continues to outpace demand.
In basic economics, this is the reason for falling prices.
With cooling housing prices, today’s buyers are able to get more house for their money.
The Fed continues to lower interest rates.
Some of these rate reductions don’t directly affect the mortgage rates that you and I find meaningful.
Some of these rates affect the costs the banks incur for borrowing money to provide the funds needed for financing real estate transactions.
Generally, as the bank’s borrowing rate decreases, so does the mortgage rates we pay.
With declining interest rates, today’s buyers are able to get even more house for their money.
Congress has passed the National Economic Stimulus Package which will help the housing market by raising loan limits for FHA, Fannie Mae and Freddie Mac.
This will allow more renters and first-time homebuyers’ access to homeownership.
As demand for real estate matches supply, prices will begin to improve.
Improving prices mean greater appreciation rates and a greater return on your investment.
This is the type of real estate market that
Milwaukee (especially in downtown) has experienced between 1995 and 2005.
As demand for real estate matches supply, more and more buyers will experience their dreams of homeownership.
In addition, more sellers will also experience their dreams of living in their next home as well.
It’s a win-win situation.
Unfortunately, we can’t get there until renters and first-time homebuyers enter the market and start the domino-effect I just described
I have worked more with renters and first-time homebuyers than any other group.
As a Real Estate Broker and REALTOR® I will explain the entire process of buying your next home, from beginning to end.
In addition, I will explain what you can expect from me during the entire process; so that there are no surprises later.
If you would like to learn more about the advantages of home or condo ownership, please call me at 414.412.7980 or e-mail at
dray@shorewest.com.
Mary Trupo, contributor for the National Association of REALTORS®, writes more about Congress’ National Economic Stimulus Package.
Click here to read how this bill will stimulate the real estate market and overall economy>>>
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