Welcome or Register

Real Estate News

Instant Reaction: Lawrence Yun on Today’s FOMC Statement

The following statement is NAR Chief Economist Lawrence Yun’s reaction to the Federal Reserve’s decision today to raise short-term interest rates, as well as what it means for the economy and housing in 2018:

“There will be juice added to the economy in the months ahead as a result of the expected passage of a massive tax cut. It remains to be seen whether the effects are long-lasting or just for a short period of time. 

However, with the unemployment rate already at a low of around 4 percent, there is not much room to go further down. That means inflationary pressure will slowly develop. That is why the Federal Reserve today raised the short-term interest rates and will likely do so three more times in 2018. The longer-term interest rates, like the 30-year fixed mortgages rate, will therefore be nudged higher in 2018. Economic stimulus will help with job creation and housing demand, but higher interest rates threaten to cut into housing affordability next year.”   

NAR Applauds FHA’s “Smart Step” on Energy Efficient Loans

The Department of Housing and Urban Development announced earlier this week that the Federal Housing Administration will no longer insure properties with Property Assessed Clean Energy assessments, winning praise from the National Association of Realtors®.

“FHA’s PACE announcement is a smart step that will protect taxpayers and strengthen the overall program for homebuyers,” said NAR President Elizabeth Mendenhall.

PACE programs allow local governments to provide homeowners with the financial resources to make energy improvements to their home. Homeowners then pay back the money through an assessment on their property tax bill. While NAR generally supports voluntary efforts to drive energy efficiency, NAR raised a series of concerns throughout the year and pushed for HUD’s shifting policy on PACE loans.

In a letter to HUD, NAR said that PACE loans typically aren’t accompanied by the same disclosures and protections as home mortgages. As a result, real estate professionals said this new financial obligation could potentially lead to a higher risk of borrower delinquency. Ultimately, NAR said that made it possible that FHA would incur higher mortgage defaults, putting systemic risk on the program.

The announcement this week marks an important policy shift at FHA, echoing many of NAR’s overarching concerns.

“FHA can no longer tolerate putting taxpayers at risk by allowing obligations like these to be placed ahead of the mortgage itself in the event of a default,” said HUD Secretary Ben Carson. “Assessments such as these are potentially dangerous for our Mutual Mortgage Insurance Fund and may have serious consequences on a consumer’s ability to repay, or when they attempt to refinance their mortgage or sell their home.”

Mendenhall agreed, adding that while Realtors® support the goals of efficiency efforts, FHA’s announcement is needed.

“NAR supports voluntary, incentive-based programs that encourage homeowners to make their property more energy efficient, but not at the expense of FHA or the strength of its portfolio,” said Mendenhall. “NAR pushed for this change and we applaud FHA’s attention to the issue.”

Instant Reaction: November Jobs Report

The following is NAR Chief Economist Lawrence Yun’s reaction to this morning’s U.S. Bureau of Labor Statistics report on employment conditions in November:

“November marked another impressive month for the labor market, adding up to now over 2 million net new jobs over the past 12 months.  From the deep recession in 2010, 17 million new jobs have been created. In fact, current employment levels are way above the pre-recession levels by nearly 10 million.

That means an abundance of new potential homebuyers in the near future. Yet, the construction employment is still slow in coming. Even the though the latest month’s job growth rate in the construction sector of 2.7% is twice as fast as the overall growth rate, total construction jobs are still well below the pre-recession levels by roughly 20%. Without more skilled construction workers and more hiring in the sector, the housing shortage will continue well into 2018.”

DON'T MISS A NEW LISTING AGAIN!

Register Now
Already registered? Login

FREE AUTOMATED EMAIL UPDATES
Sign in to take advantage of all this site has to offer. Save your favorite listings and searches – also receive email updates when listings you like come on the market for free!
*Contact Information is NOT Shared*

Ken Boyd

Ken Boyd
Century 21 Showcase
Highland, CA 92346

909-226-2851
Contact Me
CA BRE#01512242

Quick Search


view all


Any

Any

No Min.

No Max.

Buyer Satisfaction Guarantee

As a Century 21 Showcase VIP Buyer you will receive our Exclusive Buyer Satisfaction Guarantee that offers another layer of protection when buying a home.

Sell your home with Me and Your Escrow is FREE

Sell your home with me and your escrow fee is FREE! when you use our In House Escrow company. With this Special Seller Offer, you can save hundreds of dollars in sellers closing cost.

Testimonials


Ken was incredibly helpful, knowledgeable, and proactive, even in the face of a short-sale, unresponsive sellers, and a difficult ...

- Perrin42

View All Testimonials

Location


7835 Church Street
Highland, CA 92346

Cell: (909) 226-2851
KenBoydRealtor@MSN.com

Find Us Online


 

house realtor mls