Annother Stimulus Plan
November 13, 2008
The Directors of the National Association of Realtors have weighed in with a stimulus proposal.
At their meeting on Monday they formally signed off on their proposal. The N.A.R. plan is a 4 point package designed to "get the demand side moving again."
The N.A.R. proposal call for a temporary $7,500 first-time Home buyer tax credit with no repayment requirement. (The present plan enacted by Congress has a $7,500 tax credit, but it is to be repaid over a 15 year time period or when the property is sold.)
The N.A.R. plan includes a temporary federal buy-down of mortgage rates to 4.5% or less. A focus group's research indicated that a buy-down in interest rates to 3%-4.5% would get the market rolling again. These buy-down rates would be funded as a part of the $700 billion federal plan to bring liquidity back to the markets.
The N.A.R. plan also calls upon the federal government to make permanent the temporary increase in FHA, Fannie Mae and Freddie Mac loan limits to $729,750 in high cost areas. (Presently the Inland Empire loan limit is between is less than in high cost areas.) The limits are scheduled to roll back to $625,000 in high cost areas and in the mid $300,000s in our area on January 1, 2009.
The fourth proposal has to do with banks engaging in real estate brokerage and management .
Congress will be working on their own stimulus package and the Treasury Department is still looking to find a workable solution to the crisis in housing and credit markets.
While the media and financial folks are upset by the federal governments jockeying with one stimulus plan after another. Having just read a biography of FDR, the author felt that FDR's ability to try one plan after another was instrumental in finding appropriate solutions. Perhaps in major crises, It is important to asses whether a plan is working. If not, scrap it and go on to the next. That is what research and development folks do.
The Directors of the National Association of Realtors have weighed in with a stimulus proposal.
At their meeting on Monday they formally signed off on their proposal. The N.A.R. plan is a 4 point package designed to "get the demand side moving again."
The N.A.R. proposal call for a temporary $7,500 first-time Home buyer tax credit with no repayment requirement. (The present plan enacted by Congress has a $7,500 tax credit, but it is to be repaid over a 15 year time period or when the property is sold.)
The N.A.R. plan includes a temporary federal buy-down of mortgage rates to 4.5% or less. A focus group's research indicated that a buy-down in interest rates to 3%-4.5% would get the market rolling again. These buy-down rates would be funded as a part of the $700 billion federal plan to bring liquidity back to the markets.
The N.A.R. plan also calls upon the federal government to make permanent the temporary increase in FHA, Fannie Mae and Freddie Mac loan limits to $729,750 in high cost areas. (Presently the Inland Empire loan limit is between is less than in high cost areas.) The limits are scheduled to roll back to $625,000 in high cost areas and in the mid $300,000s in our area on January 1, 2009.
The fourth proposal has to do with banks engaging in real estate brokerage and management .
Congress will be working on their own stimulus package and the Treasury Department is still looking to find a workable solution to the crisis in housing and credit markets.
While the media and financial folks are upset by the federal governments jockeying with one stimulus plan after another. Having just read a biography of FDR, the author felt that FDR's ability to try one plan after another was instrumental in finding appropriate solutions. Perhaps in major crises, It is important to asses whether a plan is working. If not, scrap it and go on to the next. That is what research and development folks do.
posted by shirley harry at 8:28 AM
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