Real Estate Market Stimulation Through Mortgage Motivation

As part of my responsibility as a buyer's agent, I view and read market reports and, more importantly, sources that provide good ideas and a broader understanding of the multitude of factors that come into being a professional real estate agent. One of my recent findings came from the Realogy Corporation, and I agree with their recommendations. That said, as consumers we need to tune out the pervasive, never-ending, negative news from most media outlets. Let's get back to thinking for ourselves using verifiable information that is relevant to each of our own special goals and needs for the lifestyle we choose to live. Then let's make a plan and get on with it using the principles that make America great. We've always taken calculated risks because of the American spirit of working to make our dreams come true, undaunted by other hardships. What follows are highlights from the article, that from my perspective are relevant:

"Realty Corporation Proposed Housing Stimulation Through Mortgage Motivation"
To help stimulate the housing market and lead to a broader economic recovery, the company conducted separate national surveys with real estate franchises and U.S. homeowners, which underscore the rationale for its proposal. They posit a short-term government buy-down of mortgage rates to at least 4.5 percent, or lower, for a 30-year fixed mortgage (down from current rates of approximately 6.04 percent). This homebuyer incentive would apply to the purchase of all new and/or existing homes sold up to $1 million in price. There are a number of ways in which the government ultimately could decided to structure and fund this program.

On Hilton Head, I have experienced the same recurring theme Realogy discovered in all 50 states. Namely, there are substantial numbers of credit-worthy buyers waiting for lower rates and stability in home prices. There is pent-up demand for housing, and in a shared view, substantially lower mortgage rates will stimulate both existing and new home sales, reduce home inventory levels, stabilize home prices and, ultimately, help the overall economy. When home sales increase, housing-related consumer purchasing follows, and we would expect this to help lead our economy to a recovery.