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REALTOR®: Realtors Believe Passage of Economic Stimulus Package Will Help Jumpstart Housing Market

Monday, February 11, 2008

The National Association of REALTORS® congratulated the U.S. Congress for quickly passing a national economic stimulus package and thanked President George W. Bush for his leadership and willingness to promptly enact legislation that will help thousands of families, the housing market and the U.S. economy.

“We believe the economic stimulus bill that Congress sent to the president is strong legislation that will quickly impact the nation’s families and economy,” NAR President Richard Gaylord. “We are pleased that both the Federal Housing Administration (FHA) and the Fannie Mae and Freddie Mac (GSE) loan limits have been increased, even if only temporarily. This will be a major stimulus for the housing industry and for people who want to own a home.”

The Senate version of the economic stimulus package also includes provisions raising loan limits as high as $729,750 in high cost areas. These provisions are the same as those approved by the House of Representatives. The main difference between the House-passed and Senate-passed versions is the inclusion of $300 rebates for senior citizens and disabled veterans in the Senate bill, an issue unrelated to the housing and homeowner provisions in the measure.

According to NAR research, increasing FHA loan limits will help an additional 138,000 Americans achieve the dream of homeownership and will allow nearly 200,000 homeowners to refinance and potentially keep their home. Realtors also believe increasing the loan limits for Fannie Mae and Freddie Mac will bolster the severely stressed housing finance market by immediately infusing much needed liquidity into the nation’s mortgage market.

“While such an increase will not solve the full range of housing challenges, it will play a vitally important role in improving the nation’s economy and making the dream of homeownership more attainable for thousands,” said Gaylord.

An economic impact study conducted by NAR earlier this month estimated that increasing the GSEs’ conforming loan limits would result in as many as 500,000 refinanced loans and could help reduce foreclosures by as much as 210,000. In addition, over 300,000 additional home sales could be generated, housing inventory would be reduced and home prices would be strengthened by two to three percentage points.

“These are real results and will have an immediate and sustainable impact for families across our country,” said Gaylord.

Realtors with the San Mateo County Association of REALTORS® welcomed the passage of the economic stimulus package, as well. “Increasing the conforming loan limits will benefit families who live in areas where the price of housing is beyond the norm. We live in such an area. The economic stimulus package will also help stimulate and stabilize the economy,” said Walsh.

The San Mateo County Association of REALTORS® (SAMCAR) is a professional trade organization representing over 3,800 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula. SAMCAR 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 San Mateo County.

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 Julie Ziemelis, Director of Public Affairs, e-mail , or phone (650) 696-8214.

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