Thursday, October 29, 2009
Here is the latest on Tax Credit
Senate negotiators reached a tentative deal to extend a tax credit for first-time home buyers, but its passage remains uncertain.
The agreement would extend the existing credit for first-time home buyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners, Senate aides said. The reduced credit would be available to all home buyers who have been in their current residence for a consecutive five-year period in the past eight years.
The new provisions are aimed at broadening availability of the credit beyond first-time buyers and giving the weakened real-estate market a bigger boost while preventing real-estate investors from benefiting.
Many property experts have cited the credit as a reason for signs of recovery in the housing market in recent months. But that recovery was somewhat undercut by the September drop in new-home sales reported Wednesday.
The credit would be extended from its current expiration date of Dec. 1 to all contracts entered into by April 30, and closed before July 1. It is expected that income limits on people claiming the credit would be increased to $125,000 for singles and $250,000 for couples, from the current $75,000 and $150,000, aides said. The credit phases out for people making more than those amounts.
While Senate lawmakers appear to have reached a deal on the substance of the tax credit, they are still at odds over how it would be brought to the Senate floor. Senate Majority Leader Harry Reid (D., Nev.) hopes to add it to a bill currently on the Senate floor to extend federal unemployment insurance benefits. But agreement on that hasn't been finalized.
While Senate Republicans are likely to support the measure, House Democrats have raised concerns that it carries a high cost to the government. The Internal Revenue Service is examining the program for alleged abuse.
Write to Corey Boles at corey.boles@dowjones.com and John D. McKinnon at john.mckinnon@wsj.com
Printed in The Wall Street Journal, page A4 Copyright 2009 Dow Jones & Company, Inc. All Rights Reserved
Thank you to Dean Miller, Vice President Mortgage Banking, Patriot Bank Mortgage in Dallas for this up to the minute information.
5430 LBJ Freeway #1485
Dallas, TX 75240972-770-2636 Office
214-725-9925 Cell
972-770-2639 Fax
dmiller@patriotbankusa.com
The agreement would extend the existing credit for first-time home buyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners, Senate aides said. The reduced credit would be available to all home buyers who have been in their current residence for a consecutive five-year period in the past eight years.
The new provisions are aimed at broadening availability of the credit beyond first-time buyers and giving the weakened real-estate market a bigger boost while preventing real-estate investors from benefiting.
Many property experts have cited the credit as a reason for signs of recovery in the housing market in recent months. But that recovery was somewhat undercut by the September drop in new-home sales reported Wednesday.
The credit would be extended from its current expiration date of Dec. 1 to all contracts entered into by April 30, and closed before July 1. It is expected that income limits on people claiming the credit would be increased to $125,000 for singles and $250,000 for couples, from the current $75,000 and $150,000, aides said. The credit phases out for people making more than those amounts.
While Senate lawmakers appear to have reached a deal on the substance of the tax credit, they are still at odds over how it would be brought to the Senate floor. Senate Majority Leader Harry Reid (D., Nev.) hopes to add it to a bill currently on the Senate floor to extend federal unemployment insurance benefits. But agreement on that hasn't been finalized.
While Senate Republicans are likely to support the measure, House Democrats have raised concerns that it carries a high cost to the government. The Internal Revenue Service is examining the program for alleged abuse.
Write to Corey Boles at corey.boles@dowjones.com and John D. McKinnon at john.mckinnon@wsj.com
Printed in The Wall Street Journal, page A4 Copyright 2009 Dow Jones & Company, Inc. All Rights Reserved
Thank you to Dean Miller, Vice President Mortgage Banking, Patriot Bank Mortgage in Dallas for this up to the minute information.
5430 LBJ Freeway #1485
Dallas, TX 75240972-770-2636 Office
214-725-9925 Cell
972-770-2639 Fax
dmiller@patriotbankusa.com
Wednesday, October 28, 2009
Existing Home Sales Surge
There were few major surprises in the economic news this week, and little change in the stock market. While there was a great deal of daily volatility, mortgage rates ended the week nearly unchanged.
A flood of housing market data was released during the week, and most of it reflected improvement in the sector. The biggest unexpected news came from the September Existing Home Sales report, which jumped 9% from August to the highest level since July 2007. Inventories of unsold existing homes dropped sharply to a 7.8-month supply from a 9.3-month supply in August. This marked the lowest inventory levels in two and one-half years. September Housing Starts remained at depressed levels, which removes pressure on future inventory levels. Building Permits, a leading indicator, also held at low levels. In short, home sales improved, while inventory levels moved lower with a relatively light supply of new homes in coming months. If there is a note of caution, though, it's that much of the activity has been spurred by exceptionally low mortgage rates and the first-time homebuyer tax credit, and the future is uncertain on both fronts. The Fed is scaling back its purchases of mortgage-backed securities, which might push mortgage rates gradually higher, and lawmakers are currently debating whether to extend the first-time homebuyer tax credit.
The Mortgage Bankers Association (MBA) also released its forecasts for this year and next. According to the MBA projections, purchase originations will decline slightly in 2009, but will then increase by 12% in 2010. Similarly, the MBA forecasts that existing home sales will rise by 11% in 2010. The chief economist of the MBA suggested that the timing of the economic recovery and the level of mortgage rates are the biggest variables influencing the results for 2010.
A flood of housing market data was released during the week, and most of it reflected improvement in the sector. The biggest unexpected news came from the September Existing Home Sales report, which jumped 9% from August to the highest level since July 2007. Inventories of unsold existing homes dropped sharply to a 7.8-month supply from a 9.3-month supply in August. This marked the lowest inventory levels in two and one-half years. September Housing Starts remained at depressed levels, which removes pressure on future inventory levels. Building Permits, a leading indicator, also held at low levels. In short, home sales improved, while inventory levels moved lower with a relatively light supply of new homes in coming months. If there is a note of caution, though, it's that much of the activity has been spurred by exceptionally low mortgage rates and the first-time homebuyer tax credit, and the future is uncertain on both fronts. The Fed is scaling back its purchases of mortgage-backed securities, which might push mortgage rates gradually higher, and lawmakers are currently debating whether to extend the first-time homebuyer tax credit.
The Mortgage Bankers Association (MBA) also released its forecasts for this year and next. According to the MBA projections, purchase originations will decline slightly in 2009, but will then increase by 12% in 2010. Similarly, the MBA forecasts that existing home sales will rise by 11% in 2010. The chief economist of the MBA suggested that the timing of the economic recovery and the level of mortgage rates are the biggest variables influencing the results for 2010.
Tuesday, October 27, 2009
Early Voting Ends Friday...GO VOTE
Attached is the guide that will tell you EVERYTHING that you will be voting on. This is a BIG election and will impact the TEXAS CONSTITUTION! Big Deal! Please go vote and make sure your friends & family vote, too!!
PS - Be careful because this vote has a few items where no means yes and yes means no.
"We encourage all Texans to participate in the constitutional election of November 3. Early voting beings Monday, with 11 propositions for voters to consider.
The propositions cover a range of issues, including curbing eminent domain abuse and controlling Texas' property tax appraisal system. Other propositions fix errors that have crept into the constitution, allow for new debt, or provide the legislature with the authority to spend money."
I attached a League of Women Voters voting guide for your reference.
Here are two links that provide additional information about the proposed amendments
PS - Be careful because this vote has a few items where no means yes and yes means no.
"We encourage all Texans to participate in the constitutional election of November 3. Early voting beings Monday, with 11 propositions for voters to consider.
The propositions cover a range of issues, including curbing eminent domain abuse and controlling Texas' property tax appraisal system. Other propositions fix errors that have crept into the constitution, allow for new debt, or provide the legislature with the authority to spend money."
I attached a League of Women Voters voting guide for your reference.
Here are two links that provide additional information about the proposed amendments
Monday, October 26, 2009
Texas Homeowners: Important to vote on Nov. 3rd!
On November 3rd, there will be Propositions 2, and 3 allowing the State of Texas to start taxing Residential Homeowners. So if you own a home, and these laws are passed, you will pay additional taxes to the State and not just the COUNTY on an assessed value.
At the bottom of this announcement there is a link to the Listings of the Propositions that are up for election in November
If you Do NOT want additional property taxation PLEASE VOTE "NO" to Prop. 2 and 3 (HJR 36).
Proposition 2: The proposed amendment would appear on the ballot as follows: "The constitutional amendment authorizing the legislature to provide for the ad valor em taxation of a residence homestead solely on
the basis of the property's value as a residence homestead".
Proposition 3: The proposed amendment would appear on the ballot as follows: The constitutional amendment providing the uniform standards and procedures for the appraisal of property for ad valor em tax purposes".
If you have not read the rest of the 11 Propositions, here is the link:
http://www.sos.state.tx.us/elections/voter/2009novballotexp.shtml
At the bottom of this announcement there is a link to the Listings of the Propositions that are up for election in November
If you Do NOT want additional property taxation PLEASE VOTE "NO" to Prop. 2 and 3 (HJR 36).
Proposition 2: The proposed amendment would appear on the ballot as follows: "The constitutional amendment authorizing the legislature to provide for the ad valor em taxation of a residence homestead solely on
the basis of the property's value as a residence homestead".
Proposition 3: The proposed amendment would appear on the ballot as follows: The constitutional amendment providing the uniform standards and procedures for the appraisal of property for ad valor em tax purposes".
If you have not read the rest of the 11 Propositions, here is the link:
http://www.sos.state.tx.us/elections/voter/2009novballotexp.shtml
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