Here is a look at what items will effect the housing market in the Stimulis package AND the Treasury's package as a whole according to the National Association of Realtors' president Charles McMillan.
New Items1) the loan limits will be raised to $727,000 in high cost areas
2) the tax credit will be raised to $8,000 with NO payback [a true credit]
3) interest rates have come down 125-150 basis points
4) the bill has over $50 billion in it for foreclosure mitigation: Geitners Treasury plan signals that the second half of TARP and TALF will be used to mitigate foreclosures through a government guarantee, drive down interest rates by buying another $200-300 billion of mortgage paper from the GSES's thereby freeing them up to do the same with new mortgages, and Fannie has just agreed to lift the cap of 4 investment properties eligible for loans and raise it to 10.
Maintained Items1) mortgage interest deductability
2) real estate tax deductability
3) $250,000/$500,000 cap gains exclusion
Labels: foreclosure, housing, stimulis package, TALF, TARP, tax credit, treasury's package