Non-Profit Housing Groups Lobby for State Deed Tax Increase

In a hearing on December 8, 2005, at the Capitol, Minnesota Senate and House officials took testimony, on a proposal to increase the State Deed Tax anywhere from $56 to $340 on a $200,000 property. Minnesota REALTOR® staff attended the hearing but were not given an opportunity to comment on the proposals.

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Federal Reserve Hikes Interest Rates - Highest percentage in 4 years

As expected the Federal Reserve Board increased its short-term target rate to 4.25% from 4%, its 13th consecutive quarter point increase since July 2004. The rate was 1%, a 46-year low in June 2004. Based upon statements by the Federal Reserve Board, it is unclear if future rate hikes will occur. In the past when the Fed has raised rates, their monetary policy reflected an inclination to further increase rates in order to accommodate overall inflation concerns. The most recent release indicated a slight shift in the future focus of Fed policy.

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Housing Older Americans

An article written by Gary Engelhart examines the housing choices and needs of Americans ages 50 and older. Although there has been a substantial amount of research on housing needs and aging by demographers, sociologists, and gerontologists, homebuilders, financial-services providers, and policymakers need more information regarding this important and growing market. Engelhardt's analysis shows that for homeowners, who comprised about 80 percent of these households, there is a strong desire to age in place. In addition, his analysis shows there is a strong demand for structural modifications to accommodate older persons. Furthermore, Engelhardt finds that a primary driver of mobility comes from unanticipated declines in functional status and health.

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Freddie Mac Chairman Speaks About Housing Bubble

The following is an excerpt from Richard F. Syron, Chairman and CEO Freddie Mac to The Executives' Club of Chicago on December 6, 2005. You can read his full speech here.

"Housing has become an increasingly large and important driver of the U.S. economy. Without its strong influence, for example, the 2001 recession would have been longer and more severe. And the economy would have been notably weaker since then.

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Fannie Mae Announces 2006 Conforming Loan Limit of $417,000

WASHINGTON, DC -- Fannie Mae announced that it will apply new conforming loan limits, as determined by the Office of Federal Housing Enterprise Oversight (OFHEO) based on federal data on mean (average) home prices, to increase its single-family mortgage loan limit to $417,000 for 2006.

As a result of the new loan limit, Fannie Mae estimates that in 2006, as many as an additional 466,326 homeowners would be eligible for a conforming loan.

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