Housing, Housing, Housing

When we bought our condo, I didn't do much research, but it felt right. Initially, we worried about the economic dowturn, but now can see great blessings. It is so interesting how things come to light years later. We love where we live, are able to have a rental without overextending on a house purchase, and led to a different community than first thought. It is amazing how things come together for your good in unexpected ways.

If you have been watching the news this week, you may have noticed that the debate in Washington has finally turned toward real stimulus for the housing industry. This has been expected and finally in the forefront. The Lieberman/Isakson Amendment was included in the senate version of the Economic Stimulus Bill by a unanimous voice vote. This amendment would provide a Tax Credit to all home buyers at the rate of 10% of the sales price up to a limit of $15,000. The credit would be available for a one year period to all purchasers of primary residences.  

This gives a credit to ALL homebuyers, not just first time buyers.  It exceeds the previous 7,500 limit.  It is available to anyone buying from 1/09-12/09.  It doesn't need to be rapaid.  The income restrictions are still unkown.  Who knows if we would qualify, but it is a step in the right direction in my opinion.   

Today, the senate expects to debate Amendment 353, a proposal by Senator John Ensign (R-NV) that would provide 30 year fixed financing at a rate of about 4%, for anyone purchasing a primary residence.

If these two provisions survive in the final passage of a stimulus bill they could have a tremendous impact on the ability to purchase a home. If they are coupled together with provisions to ease the flow of credit and reduce foreclosures.

I feel that these provisions represent real economic stimulus. If the senate approves the package Obama would want to sign this into legislation on President's Day, Feb. 16th.

We thought we refinanced at a great interest rate, but are excited to buy at an even better interest rate. Can you believe people are getting homes at 4.75% and it looks like it might go down. That is crazy! Forecasts predict housing to continue downward, but I was always concerned about an eventual increase in mortgage rates. If this bill passes, we knwo that it won't go up right away. Eventually with all this money congress is throwing into the mix inflation and interest rates will rise, right? Anyway, some food for thought. My blog has been very random latley. Things on my mind. Give me some advice on your thoughts. I am no expert.