Housing Rescue Bill Passed
Posted on July 30, 2008 by Matt.
President Bush has signed the Housing Rescue Bill after the House and Senate passed it. As noted in prior blogs, the major benefit to the San Clemente real estate market is the following:
- Permanent increase of conforming loan limits from $417,000 to $625,000 making San Clemente home and condo prices within these ranges avoid jumbo financing that costs 1-1.5% higher.
- A potential reduction in inventory levels as the first time homebuyer credit and assistance to troubled borrowers should help to bring supply back to historical levels, which in turn will help prices stabilize.
- The recapitalization of Fannie Mae and Freddie Mac should help to make credit more available to those who can afford to buy and can qualify
The only downfall of the Bill from a housing recovery perspective is the seller down payment assistance being eliminated as this may result in some buyers unable to come up with the needed cash. This may specifically be true in new developments, such as in
Talega, as homebuilders like Standard Pacific have been offering down payment assistance in select communities.
For more information about this Bill, please click on the link above, read the related blogs below, or
contact us today.
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