This week, the top real estate news included a report from the National Association of REALTORS®(NAR) detailing an increase in existing-home sales in May. Additionally, the government’s program to provide $6 billion in funds for state and local communities to aid buyers of foreclosure homes really kicked into gear. For buyers interested in condos, lawmakers are urging Fannie Mae and Freddie Mac to reduce restrictive mortgage rules. And, a plan to create a consumer protection agency to help prevent the issuing of bad mortgages is currently being debated in Congress.
Existing-Home Sales Increase in May
Existing-home sales experienced their first back-to-back monthly gain since September 2005, according to May data released by the NAR. Housing affordability and the $8,000 first-time buyer tax credit contributed to the 2.4 percent rise in existing-home sales last month, and their seasonally adjusted rate of 4.77 million units. The data, which includes single-family, townhomes, condominiums and co-ops, increased over April’s 4.66 million unit rate, though the totals are 3.6 percent lower than May 2008’s 4.95 million rate.
Government Offers $6 Billion to Buy Foreclosure Homes
State and local housing authorities, and many non-profit organizations, are now eligible to take funds from a $6 billion federal government pool set aside to buy foreclosure homes for middle- and low-income families. The program, called the Neighborhood Stabilization Program (NSP), was created to improve neighborhoods and reduce the number of foreclosures on the market.
Lawmakers Urge Fannie, Freddie to Relax Condo Mortgage Rules
Representatives Barney Frank (D., Mass.) and Anthony Weiner (D., N.Y.) are urging Fannie Mae and Freddie Mac to relax the standards for granting mortgages for new condos. The current tough standards are, they say, contributing to the slowdown of the housing market and affecting the development of new units.
Disagreement Over Consumer Protection for Mortgages, Credit
President Barack Obama’s plan for a Consumer Financial Products Agency, which would protect consumers against bad mortgages and credit practices, is creating intense disagreement in Congress. Key Democrats, including House Financial Services Chairman Barney Frank (D-Mass.), support the creation of the consumer agency, believing that consumer issues have not been part of financial regulation in the past. Meanwhile, Republicans including Rep. Scott Garrett (R-N.J.) say that the agency will be too heavy-handed and impose a “government-knows-best” set of regulations for the financial sector.
