NEW LOAN LIMITS MAY STIMULATE HOME SALES IN THE GREATER DANBURY AREA

For Immediate Release

                     NEW LOAN LIMITS MAY STIMULATE HOME SALES IN THE GREATER DANBURY AREA

ERA Goodfellow Homes Scott Cooney Available to Discuss New Conforming Loan Limits and Overall Housing Market in Greater Danbury Area

Danbury, CT (Feb, 19^th 2008) - ERA Goodfellow Homes applauds and looks forward to the anticipated positive impact the new economic stimulus package recently signed into law by President George W. Bush will have on our local real estate market.

With the government raising the FHA conforming loan limit for all homes bought through the end of this year, much larger mortgages will qualify for purchase by government housing authorities Fannie Mae and Freddie Mac, lowering the interest rates for borrowers.  As a result, buyers and existing homeowners can get lower interest rates on what used to be known as ‘jumbo loans' that were resulting in higher percentage point more than conforming loans.

"This new government stimulus package presents a great opportunity for a consumer to purchase their "Dream Home" or allowing existing homeowner to strengthen their financial position through refinancing." said Scott Cooney, President of ERA Goodfellow Homes. "Our 2007 national senior survey clearly shows that boomers will look to take advantage of this situation.  We found that one-in-five boomers plan to change houses in the next five years.  With our skilled agent base, we are available to work with the consumer on every available option and use this ruling to help explore the opportunities."

Here are our suggestions on how home buyers can take advantage of this change in the home buying/selling climate:

• If you are going to be in a home for more than two years, now is the right time to buy. Prices may still move lower this year, but based on statistics compiled by NAR*, they are expected to go back up before you plan to sell and you can take advantage of the more favorable mortgage rate.
• Get pre-qualified for a mortgage as soon as possible so you can make an offer before someone else does - more people will be out shopping for homes in a higher price range.
• If you saw a dream home you couldn't afford last year, look again. Two trends are moving in the buyer's favor - the price may have dropped and you will be able to afford a bigger mortgage at a lower interest rate.
• Sellers should not hold back at a time when more buyers are becoming qualified to get a larger mortgage. This program may not continue beyond this year. 
• Timing the market is not possible. While you may have to sell for less than you would have received a year ago, you'll make it up on the lower purchase price of your next home and lower financing costs.

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.

•·        NAR believes that 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 vital role in improving the nation's economy and making the dream of homeownership more attainable for thousands," said NAR President Richard Gaylord.

•·        An economic impact study conducted by NAR earlier this month estimated that increasing the GSEs' (Fannie Mae and Freddie Mac) 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 NAR President Richard Gaylord.

* NAR Hails Passage of Economic Stimulus Package to Help Jumpstart Housing Market; available: http://www.realtor.org/press_room/news_releases/2008/nar_hails_passage_of_stimulus_package.html