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This week's Real Estate stories
By MarketWatch
Last Update: 5:22 PM ET Aug 1, 2008
Don't miss these top stories:
Hidden traps in housing bill
Home prices plunge
Sun Belt migration on hold
Mortgage rates ease
Homeowners at risk of foreclosure may be able to benefit from a provision in the housing bill signed by the president this week that will allow them to refinance into more-affordable loans backed by the Federal Housing Administration.
To help people interested in a FHA mortgage, LendingTree.com also this week launched an FHA eligibility tool. Visit LendingTree.
"We've discovered that most borrowers are unaware of FHA-insured loans and what it takes to actually qualify for one," says Nicole Hall, editor-in-chief of the LendingTree Smart Borrower Center, in a news release.
FHA-insured loans once had been seen as an option for lower-income borrowers, those with low down payments and those with weak credit scores. But now FHA is attracting even "well-to-do borrowers in affluent housing markets," according to the release.
Also this week, Hope Now reported that more than 181,000 mortgage workouts were completed in June on loans that otherwise would have gone into foreclosure. In the second quarter, servicers completed more than 522,000 workouts, according to a news release. Hope Now is an alliance of mortgage servicers, counselors and investors working to help homeowners at risk of foreclosure to stay in their homes.
Read more about what the housing legislation will do -- and won't do -- for consumers in this week's pages. Plus, read the latest home-price data and how the housing slump may be affecting migration trends.
The Hope Now efforts were a start to keeping homeowners in their homes. Hopefully, even more get relief due to the new legislation.
-- Amy Hoak, Real Estate writer
President signs far-reaching housing bill
President Bush Wednesday morning signed legislation that consumers, industry and lawmakers hope will shore up the housing market, provide an emergency safety net for mortgage giants Fannie Mae and Freddie Mac and help hundreds of thousands avoid foreclosure. See full story.
The hidden tax traps in the housing-rescue bill
The eagerly anticipated housing-rescue bill, also know as the Housing Assistance Act of 2008, is intended to calm the mortgage market, the real estate market, homeowners on the verge of bankruptcy and foreclosure, victims of bank failures and others whose lives are topsy-turvy this year. But from a tax perspective, the bill is likely to cause more upset than calm. See Tax Watch.
Fine print in housing bill mutes benefits for consumers
One of the highlights of the housing bill waiting to be signed by President Bush is a tax credit of up to $7,500 for first-time home buyers. But read a little closer and it doesn't seem quite as appealing for buyers: that credit has to be paid back. That's just one of the lines of fine print in the bill that mutes the benefit to consumers, housing analysts say. See Real Estate.
Residents stay put as housing slumps, reshaping U.S. migration
Something happened last year in Chicago that hasn't been seen since 2001: Instead of losing residents, the Second City actually gained population. See Real Estate.
Give away your real estate and shore up your finances
If there is a problem with owning real estate, it comes when it's time to get rid of it. For one thing, it's highly illiquid. While you can dispose of stocks and bonds within minutes by simply calling a broker, it takes time -- sometimes, like these days, a long time -- to sell a house or other property. Then there's the matter of obtaining top dollar, or even a fair price. And when the need to sell is urgent, the chances of receiving market value are greatly reduced. Indeed, the faster sellers want to move, the less they'll usually take. But these drawbacks can be overcome by giving your property away instead of selling it. See Realty Q&A.
Home prices down 15.8% in past year, S&P says
Home prices in 20 major U.S. cities have fallen a record 15.8% in the past year, as prices dropped in all areas tracked by the Case-Shiller home price index, Standard & Poor's reported Tuesday. See Economic Report.
More moves to rescue housing market
The covered-bond program and the housing bill are Washington's latest moves to rescue the housing market. Beth Ann Bovino, senior economist at Standard & Poor's, comments on the prospects for a turnaround. Watch Video Report.
Four banks to kick-start covered bond market in boost to mortgage lending
Appearing alongside Treasury Secretary Henry Paulson, representatives of the four largest U.S. banks agreed Monday to kick-start a market for covered bonds -- an alternative way to provide mortgage loans -- in the United States. See full story.
No sign yet of a housing bottom
David Blitzer, managing director and chairman of the Index Committee at Standard and Poor's, discusses the latest S&P;/Case Shiller home-price index, which showed price declines continued to worsen in May. Watch Video Report.
Mortgage applications drop; fixed rates move lower
Applications filed for mortgages fell a seasonally adjusted 14.1% last week, as applicants shrugged off lower interest rates on fixed-rate loans, the Mortgage Bankers Association reported on Wednesday. See full story.
U.S. mortgage rates drop: Freddie Mac
Mortgage rates dropped this week, after a fall in commodity prices eased worries about inflationary pressures, Freddie Mac's chief economist said Thursday. See Mortgages.
Housing bill 'no silver bullet,' builder CEO says
The chief executive of one of the nation's largest home builders said a package signed into law on Wednesday could stimulate some areas of the downtrodden housing market, but added he's not banking on a recovery this year. See full story.
Impact of the new housing bill
Paul Bishop, economist for the National Association of Realtors, speaks with WSJ's Sudeep Reddy about the implications behind a major housing bill signed into law on Wednesday. Watch Video Report.
The limits on mortgage relief
If you are hoping for mortgage relief under the new Hope for Homeowners Act, here's another factor that you and your lender will have to work into your numbers. See Brett Arends.
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