I've been writing a series of posts about the Housing and Economic Recovery Act, which became law in July. This is what Congress calls an "omnibus" bill --- because it had so many provisions. Some got more publicity than others. At the time the law was passed, the authority to take over Fannie Mae and Freddie Mac was not given a lot of emphasis -- Treasury Secretary Paulsen said that authority was unlikely to be used.  A mere six weeks later, they were used to perform the largest government bailout in a long time. See full story of the take-over by the Wall Street Journal.

The initial market reaction on Monday was great for homeowners seeking to refinance and for buyers who -- at least briefly -- saw the lowest mortgage interest rates in a year.   Whether that will continue even 24 hours appears doubtful tonight: The Asian stock markets are down as pessimism about the U.S. housing market overwhelms the initial reaction to the mortgage market bailout: Stocks reverse gains as bailout optimism fizzles. We'll see tomorrow what happens when the U.S. markets open. But, as reality sets in, it may not be good: Reality Check.

While they seem of little impact in the face of this turmoil in the financial markets, here are links to my earlier posts about the Housing and Economic Recovery Act:

First-Time Home Buyers Get Encouragement 

Provision would eliminate privately-financed downpayment assistance -- good news or bad news? 

The recently passed Housing and Economic Recovery Act provides some temporary relief for property tax for some homeowners 

New Housing Act Creates Tax Hit for Some Flagstaff Homeowners

For help with Flagstaff real estate, contact Team Heitland at RE/MAX Peak Properties.