NAR Urges Legislation To Make Mortgages More Accessible
The National Association of Realtors® applauds recent actions by the Federal Reserve and the Treasury Department making mortgage interest rates more affordable. However, further action is needed …
“Our members tell us that families are once again looking to enter the housing market only to find that delays, process and bureaucracy are getting in the way,” said NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “The federal government and the mortgage lending industry must address continuing problems that are impeding the delivery of mortgage credit to home buyers and those trying to avoid foreclosure.”
In a letter to the Treasury Department, the Federal Reserve Board and the Federal Housing Finance Agency, and copied to President-elect Barack Obama’s transition team, NAR notes that in addition to lowering interest rates, the federal government must work with mortgage lenders and credit reporting agencies to eliminate processes that are making it difficult to close on a mortgage loan so that the housing market and the nation’s economy can have a robust recovery.
“Now really is a great time to buy a home. Inventory is high, prices are down and mortgage rates are near 50-year lows. We have to unclog the system and let people achieve and hold on to the dream of homeownership,” McMillan said.
Increased Housing Affordability Continues, according to NAR
Lawrence Yun, NAR chief economist, expected a decline in home values. “The quickly deteriorating conditions in the job market, stock market, and consumer confidence in October and November have knocked down home sales to another level. We hope the home sales impact from the stock market crash turns out to be short-lived, as was the case in 1987 and 2001,” he said.
“It is, therefore, imperative to provide incentives for home buyers to get back into the market. It also depends on how effectively Congress and the new administration can help facilitate the short sales process and unclog the mortgage pipeline – impediments remain for some buyers with good credit,” Yun said.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 6.09 percent in November from 6.20 percent in October; the rate was 6.21 percent in November 2007. Recently, Freddie Mac reported the 30-year rate fell to 5.19 percent – the lowest on record since the series began in 1971.
Federal Reserve Receives Applauds From NAR
The Federal Reserve Board lowered interest rates for homebuyers and homeowners who need to refinance and received applauds from the National Association of Realtors®.
“NAR has been aggressively calling for mortgage rate reductions, and the Fed’s action to slash interest rates, coupled with the actions by the Federal Housing Finance Agency and the Department of the Treasury, has driven down interest rates to make the dream of homeownership once again attainable for thousands of Americans,” said NAR President Charles McMillan.
Northern Virginia: November 2008
The Northern Virginia Association of Realtors® reports on November 2008 home sales activity for Fairfax and Arlington counties, the cities of Alexandria, Fairfax and Falls Church and the towns of Vienna, Herndon and Clifton.
A total of 1,100 homes sold in November 2008, a 3.29 percent increase above November 2007 home sales of 1,065. At the end of November, there were 1,458 sales contracts pending in Northern Virginia, a 28.35 percent increase over the 1,136 contracts pending in November 2007.
Active listings decreased by 13.81 percent from last year, with 8,369 active listings in November, compared with 9,710 homes available in November 2007. The average days on market (DOM) for homes in November 2008 decreased slightly at 91 days, compared with 99 days on the market in November 2007.
Sales prices continue to remain lower than those realized last year. The average sales price in November fell by 17.68 percent from November 2007, to $423,088, compared with last November’s average of $513,930.
The median price of homes sold in Northern Virginia in November was $335,000, which is a decline of 21.18 percent compared with November 2007’s median price of $425,000.
Greater Northern Virginia: November 2008
Sales activity in Greater Northern Virginia (NVAR jurisdictions plus Prince William, Loudoun and the Greater Piedmont counties) for November 2008 continues to show an increase from 2007.
The number of Greater Northern Virginia region homes sold in November was 2,378, a 28.68 percent increase from November 2007’s total of 1,848 sales. This marks the eighth consecutive month of increased year-over-year sales totals for Greater Northern Virginia.
The average sales price of $328,691 in November 2008 continues to lag behind the 2007 average by about 29.22 percent. The November 2007 average sales price was $464,371.
Across Greater Northern Virginia, the number of listings showed a decrease from 2007 numbers, with 17,252 listings active, which is 21.32 percent less than this time last year, when 21,926 homes were available. The average DOM for a home sold in November 2008 was 98 compared with last year’s 113 DOM, a decrease of 12.56 percent.