Pending Home Sales Hit New Lows

According to a report released this week, the number of homes currently contracted for sale fell to an all time low since 2001. The decline was greater than expected by economists, and is testament to the fact that relief within the housing market has not yet been achieved. It is speculated that more conservative lending standards, as well as a lack of speculative buying, are the culprits to the continuing decline in home sales. As government officials continue to brainstorm ways to ease the housing crisis, economists are hopeful and expect an upswing in the second half of the year.

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Legislation Aimed at Stabilizing Housing

A $15 billion package geared toward stabilizing the housing market is currently slated to be passed by the Senate. This package includes tax breaks for homebuilders and other businesses, and also new tax credit and deduction for both homebuyers and homeowners.
This legislation, however, is lacking support in the House, and yet at the same time lawmakers are expected to act quickly to remedy the current situation in order to prevent widespread foreclosure. It is expected that the House may formulate its own bill in light of the Senate’s recent proposal.

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Mortgage Help to Increase for Families in Need

According to HUD, the Bush administration announced recently that additional mortgage assistance will be provided to borrowers of subprime mortgages who are at risk of foreclosure. This plan is aimed at breaking the cycle of continually depreciating house values – the widespread result of increasing numbers of foreclosures and subsequent retraction by the credit market. The new plan expands upon FHASecure to help homeowners keep up with their current high-cost mortgage payments, with an expected result of 500,000 families refinancing into prime-rate FHA-insured mortgages by the end of the year.

For more information on this story, please visit: http://www.hud.gov/news/release.cfm?content=pr08-050.cfm