SALT LAKE CITY (AP) -- Utah Gov. Gary Herbert says he'll use $8 million in federal stimulus funds to help kick start the state's sluggish housing market.
Herbert's office released a statement Friday saying that the state will offer $4,000 grants to 2,000 home buyers.
The program comes on the heels of one started by former Gov. Jon Huntsman, who used $10 million in stimulus funds offer $6,000 grants.
The state awarded those 1,600 grants in less than 12 weeks earlier this year.
The Utah Housing Corporation says the grants have led to home sales of $376.7 million, creating thousands of jobs and millions of dollars in wages.
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Marina Vialtsina
Showing posts with label economic stimulus. Show all posts
Showing posts with label economic stimulus. Show all posts
Friday, September 4, 2009
Friday, September 5, 2008
Economic Commentary
We are going to have to pay the price…
Eventually we are going to have to pay the price. The government has reported that our monthly budget deficit was over $100 billion in July. Projections show that we could easily exceed a $500 billion deficit for this fiscal year. What caused these exploding deficits? There are too many factors to even count on one hand–but economic stimulus payments, rescuing financial institutions and fighting a war while the economy slows down are all part of the equation. Why is the government borrowing so much even important? When the government borrows it increases general demand for funds. Essentially, the government is competing against us when we are borrowing to purchase a home. This forces interest rates higher.
The long-term result of big deficits is higher interest rates. However, we need lower rates desperately right now to help the real estate market and thus the economy to recover. It is another catch-22. Higher rates make the deficit worse because the government pays more on the debt. Higher rates also slow down the economy. And that in turn makes the deficit worse. Therefore, the Federal Reserve Board knows we need lower rates to help the economy. Low rates in the face of large deficits can cause inflation to increase and the latest consumer price numbers show that we are indeed in danger of inflation running out of control. This is why the recent drop in oil prices is such good news. The message? We need to find a way to get the budget under control so that we have room to let the economy recover–without the strong medicine of higher rates. Our slow economy will force the President and Congress to consider more economic stimulus payments. Perhaps they should resist the temptation.
Eventually we are going to have to pay the price. The government has reported that our monthly budget deficit was over $100 billion in July. Projections show that we could easily exceed a $500 billion deficit for this fiscal year. What caused these exploding deficits? There are too many factors to even count on one hand–but economic stimulus payments, rescuing financial institutions and fighting a war while the economy slows down are all part of the equation. Why is the government borrowing so much even important? When the government borrows it increases general demand for funds. Essentially, the government is competing against us when we are borrowing to purchase a home. This forces interest rates higher.
The long-term result of big deficits is higher interest rates. However, we need lower rates desperately right now to help the real estate market and thus the economy to recover. It is another catch-22. Higher rates make the deficit worse because the government pays more on the debt. Higher rates also slow down the economy. And that in turn makes the deficit worse. Therefore, the Federal Reserve Board knows we need lower rates to help the economy. Low rates in the face of large deficits can cause inflation to increase and the latest consumer price numbers show that we are indeed in danger of inflation running out of control. This is why the recent drop in oil prices is such good news. The message? We need to find a way to get the budget under control so that we have room to let the economy recover–without the strong medicine of higher rates. Our slow economy will force the President and Congress to consider more economic stimulus payments. Perhaps they should resist the temptation.
Saturday, February 23, 2008
How New FHA, GSE Loan Limits Impact You
Few posts ago, I have mention that new limit is coming....so, now, when it is here, how is it impacting you?
Last week, President Bush signed into law a $152 billion economic stimulus bill that includes temporary increases in loan limits for the government sponsored enterprises (GSEs) — Fannie Mae and Freddie Mac — and the Federal Housing Administration until Dec. 31. But what does this mean for you?
The NATIONAL ASSOCIATION OF REALTORS® launched a new resource Web page, http://www.realtor.org/gapublic.nsf/pages/economic_stimulus devoted to educating you about the new loan limits, which loans are eligible, and the implementation of these temporary limit increases.
NAR has developed estimates of the FHA and GSE single-family loan limits (http://www.realtor.org/GAPublic.nsf/files/new_loan_limits.pdf/$FILE/new_loan_limits.pdf) by state and county so that you can get a sense of how the loan limits will rise in your markets. As you can see, Nevada, for instance, is mentioned, but nothing was done for Las Vegas. However, Salt Lake City is there: FHA limit used to be $362,790, now it is $546,875 and same for GSE limit. Other effected Utah cities are Garfield, Grand, Iron, Juab, Kane, Millard, Morgan, Piute, Rich, San Juan, Sanpete, Sevier, Summit, Tooele (same before anf after numbers as SLC), Uitah, Utah, Wasatch, Washington, Wayne, Weber. As you see some cities are missing?
"The importance of immediately implementing the new limits cannot be overstated," said NAR President Richard Gaylord last week in a public statement. "Mortgage markets throughout the country need liquidity. Our research indicates that the increased 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 homes.”
The FHA limit will increase to as much as $729,750 in high cost areas (to 125 percent of local median home prices). The GSE limit will jump to $729,750 for loans; currently Fannie Mae and Freddie Mac loans are capped at $417,000. So, when you hear and see these numbers, please know it is not about all of us.
Eligible loans from FHA include mortgages that were issued for credit approval on or before Dec. 31, 2008. GSE loans that are eligible include loans that originated after July 1, 2007 to Dec. 31, 2008.
The U.S. Department of Housing and Urban Development is required to publish the new mortgage limits by March 14; the limits will be effective for FHA immediately upon publication.
"This will be a major stimulus for the housing industry and for people who want to own a home,” Gaylord said.
Last week, President Bush signed into law a $152 billion economic stimulus bill that includes temporary increases in loan limits for the government sponsored enterprises (GSEs) — Fannie Mae and Freddie Mac — and the Federal Housing Administration until Dec. 31. But what does this mean for you?
The NATIONAL ASSOCIATION OF REALTORS® launched a new resource Web page, http://www.realtor.org/gapublic.nsf/pages/economic_stimulus devoted to educating you about the new loan limits, which loans are eligible, and the implementation of these temporary limit increases.
NAR has developed estimates of the FHA and GSE single-family loan limits (http://www.realtor.org/GAPublic.nsf/files/new_loan_limits.pdf/$FILE/new_loan_limits.pdf) by state and county so that you can get a sense of how the loan limits will rise in your markets. As you can see, Nevada, for instance, is mentioned, but nothing was done for Las Vegas. However, Salt Lake City is there: FHA limit used to be $362,790, now it is $546,875 and same for GSE limit. Other effected Utah cities are Garfield, Grand, Iron, Juab, Kane, Millard, Morgan, Piute, Rich, San Juan, Sanpete, Sevier, Summit, Tooele (same before anf after numbers as SLC), Uitah, Utah, Wasatch, Washington, Wayne, Weber. As you see some cities are missing?
"The importance of immediately implementing the new limits cannot be overstated," said NAR President Richard Gaylord last week in a public statement. "Mortgage markets throughout the country need liquidity. Our research indicates that the increased 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 homes.”
The FHA limit will increase to as much as $729,750 in high cost areas (to 125 percent of local median home prices). The GSE limit will jump to $729,750 for loans; currently Fannie Mae and Freddie Mac loans are capped at $417,000. So, when you hear and see these numbers, please know it is not about all of us.
Eligible loans from FHA include mortgages that were issued for credit approval on or before Dec. 31, 2008. GSE loans that are eligible include loans that originated after July 1, 2007 to Dec. 31, 2008.
The U.S. Department of Housing and Urban Development is required to publish the new mortgage limits by March 14; the limits will be effective for FHA immediately upon publication.
"This will be a major stimulus for the housing industry and for people who want to own a home,” Gaylord said.
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