home | banking | car | college | credit/credit card | economy | home/mortgage | insurance | investment | retirement | spending | tax | et cetera

November 30, 2004 03:32 PM

Housing Wealth Reverberates


Excerpt: Homeowners who watch the value of their houses climb aren't reluctant to spend a portion of that growing wealth, pumping about 5 1/2 cents for every dollar increase in home equity back into the economy, a study released Tuesday finds.


Homeowners who watch the value of their houses climb aren't reluctant to spend a portion of that growing wealth, pumping about 5 1/2 cents for every dollar increase in home equity back into the economy, a study released Tuesday finds.

And while that is the same amount of spending that comes from every dollar increase in stock wealth, consumers take much longer to part with stock gains, in part because they think those gains are more likely to evaporate, the study shows.

That more-immediate impact of housing wealth has provided major underpinning for the U.S. economy this decade, according to the study produced by the Joint Center for Housing Studies of Harvard University and Macroeconomic Advisers and commissioned by the National Association of Realtors.

That stimulus was particularly helpful during the downturn of 2001 and 2002, said David Lereah, NAR's chief economist.

Read Full Story ...



Conforming Mortgage Loan Limits Rise For 2005 (December 04, 2004)
Borrowers can get larger loans in 2005 without having to pay higher rates for jumbo mortgages. Mortgage funding titans Fannie Mae and Freddie Mac have raised their 2005 conforming limit to $359,650, up from the 2004 limit of $333,700. It represents a 7.7 percent increase ...
12 Tips For Wise Use Of Equity (December 01, 2004)
Before taking a home equity loan, look over these guidelines. 1. Make your mortgage payments a priority. It's your home that's on the line. 2. Don't go with a high loan-to-value product. Lenders who let you borrow more than your house is worth may not ...
More Mortgages To Be 'Conforming' (November 30, 2004)
Thousands of U.S. homeowners will be able to take advantage of slightly better mortgage terms in 2005 as a hike in the conforming-loan limit will allow mortgage giants Fannie Mae and Freddie Mac to purchase bigger loans. Fannie Mae (FNM: news, chart, profile) and Freddie ...
Realtors Engage In Turf Battle With Discounters (November 28, 2004)
Facing competition from discount firms that offer similar services for as little as half the price, real estate agents in the United States are promoting themselves with a familiar mantra: You get what you pay for. If they hire traditional Realtors, customers will "have someone ...

Read all 22 posts in the same category of Home and Mortgage:

A New Way to Hedge Your Home's Paper Profit - Dec 12, 2004
California, U.S. in a Housing 'Bubble,' UCLA Forecast Says - Dec 11, 2004
21st-Century Landlords - Dec 10, 2004
Get Real About Real Estate - Dec 09, 2004
Can There Be Too Many Homeowners? - Dec 06, 2004
Selling Your Home - Dec 06, 2004
Conforming Mortgage Loan Limits Rise For 2005 - Dec 04, 2004
12 Tips For Wise Use Of Equity - Dec 01, 2004
More Mortgages To Be 'Conforming' - Nov 30, 2004
Realtors Engage In Turf Battle With Discounters - Nov 28, 2004
Expanding The American Dream Commitment - Nov 26, 2004
'Tis the Season to Fix Up Your House - Nov 26, 2004
Sell Your Home — Fast - Nov 26, 2004
Most Expensive Gated Communities In America 2004 - Nov 26, 2004
Exchanging Real Estate Tax Free - Nov 25, 2004
Home Equity For The Holidays? OK, With Caution. - Nov 25, 2004
Does It Pay To Save? - Nov 23, 2004
The High Earner/Poor Saver - Nov 20, 2004
Six-Figure Zip Codes - Nov 20, 2004
Buyer's Home Feature Preferences Reflect Lifestyles - Nov 16, 2004
Pattern of Strong Home-Price Gains Continues in Most Metro Areas - Nov 16, 2004