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Congress Expands Homebuyer Tax Credit
Baltimore Sun (11/06/09)
The House voted Nov. 5 to extend and expand a tax credit for home buyers past its Nov. 30 expiration date, giving lenders hope that home sales will climb during the normally slow winter months. Buyers who have owned their current homes for at least five years would qualify for tax credits of up to $6,500, while first-time buyers or people who have not owned in the previous three years could receive up to $8,000. Buyers must sign purchase contracts prior to May 1 and close before July 1. The incentive is being made available for the purchase of principal residences priced at $800,000 or less, and the break would be phased out for individuals earning more than $125,000 a year and for joint filers with annual incomes above $225,000.
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30-Year Mortgages Dip Below 5 Percent
Chicago Sun-Times (11/06/09)
The average interest for 30-year fixed mortgages has fallen below 5 percent once again after rising for three straight weeks. Freddie Mac reports that mortgage rates averaged 4.98 percent this week, down from 5.03 percent a week earlier. Also, fixed rates on 15-year home loans fell to 4.40 percent from 4.46 percent; adjustable rates on five-year mortgages declined to 4.35 percent from 4.42 percent; and adjustable rates on one-year mortgages decreased to 4.47 percent from 4.57 percent.
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Report Sees Commercial Real Estate Bottom, Opportunities
Omaha World-Herald (NE) (11/06/09)
A study by PriceWaterhouseCoopers and the Urban Land Institute expects the commercial real estate industry to hit bottom in 2010 after a surge of defaults, write-downs and lender workouts. Researchers, though, say the shakeout will present an opportunity for investors to gobble up some prime bargain properties. ULI's Stephen Blank remarks, "Those that are patient, daring and selective could score generational bargains on premium properties from both distressed sellers and banks that are clearing out unwanted bad loan and real estate-owned portfolios." Some property professionals expect that commercial properties will have lost as much as 50 percent of their value from the peak of mid-2007 by the time the market begins to recover in 2010.
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Hit by Huge Loss, Fannie Mae Seeks More Federal Aid
Washington Post (11/06/09) P. A14; Goldfarb, Zachary A.
Having already received $45 billion in assistance from the U.S. government since its takeover, Fannie Mae is seeking another $15 billion after posting a third-quarter loss of $19 billion. Its losses have totaled $111 billion since the 2008 seizure by the federal government, and Fannie Mae says they will continue to rise -- mainly due to activities requested by the U.S. Treasury to modify mortgages to curtail foreclosures. On that front, the firm announced its Deed for Lease Program, which transfers ownership of a foreclosed property to Fannie Mae but allows the occupants to remain in place by paying rent.
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Fannie Arrives at a Deal to Sell $2.6 Billion in Unused Tax Credits
Wall Street Journal (11/06/09) P. C11; Timiraos, Nick
The Treasury Department is considering whether to allow Fannie Mae to sell some $2.6 billion in untapped low-income housing tax credits. The credits are nearly worthless to Fannie Mae and generate losses for the company every quarter as their value drops. The Federal Housing Finance Agency has approved the deal, but Treasury is weighing its larger policy goals and the perception that the government aids Wall Street, in addition to the issue of conserving Fannie Mae's capital.
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