REALTOR® associations at the local, state and national level said they were pleased Congress finally came together in a bipartisan effort to pass the Emergency Economic Stability Act of 2008. They believe this legislation is critical to ending the current economic crisis crippling the housing and financial markets.
National Association of REALTORS® President Dick Gaylord said, "This legislation would quickly restore liquidity to the mortgage market, which would stabilize the housing market and protect homeowners."
NAR believes with this legislation, mortgages as well as personal and small business loans would become more available and less costly.
"Protecting Main Street not only benefits individuals, families and communities, but also supports the larger U.S. economy," Gaylord said.
William Brown, president of the California Association of REALTORS®, said, "The health of the nation's housing market is critical to the financial well-being of every household in the country, and is front and center here in California."
At the local level, Leannah Hunt, president of the Silicon Valley Association of REALTORS® also expressed local Realtors' relief. "We're thankful of the efforts of our congressional leaders and NAR for their efforts in securing adequate protections for consumers and taxpayers, as well as stricter oversight protocol," said Hunt, who is a Realtor with Coldwell Banker in Palo Alto.
SILVAR is a professional trade organization that represents over 4,500 REALTORS® and affiliate members engaged in the real estate business on the Peninsula and in the South Bay. The REALTOR® association has five districts: Menlo Park/Atherton, Palo Alto, Los Altos/Mountain View, Cupertino/Sunnyvale, and Los Gatos/Saratoga.
Hunt said the association's members are pleased because the bill encourages negotiation in short sales and consumer efforts to refinance and reconfigure existing mortgages. The legislation also allows the government to buy troubled loans and mortgage securities.
NAR Chief Economist Lawrence Yun commented on the low stock market valuation after the passage of the legislation and what it means for consumers.
"When the stock market tumbles, the Treasury yields generally fall. Mortgage rates therefore would be falling as well," Yun said. "More than 90 percent of the workforce have a job, so it is a matter of confidence of these people in taking advantage of the current low mortgage rates."
Serious home buyers with good credit who are able to qualify for a loan but are sitting on the fence hoping for a better deal, should consider the advantage of the conforming loan limits, Hunt said.
"Sales activity has picked up throughout the region, and Realtors should be encouraging their clients to take advantage of conforming loans, which have outstanding rates for more entry buyers through the end of the year," Hunt said.
In February, Congress passed the Economic Stimulus Act of 2008, which temporarily raised the conforming loan limit in high-cost areas to $729,750 from $417,000 until December 31, 2008. This summer, Congress passed the Housing and Economic Recovery Act of 2008, with a lower, but permanent loan limit of $625,500. The new permanent loan limit will go into effect January 1, 2009.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.