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Positive Conversations

by Don Roth

We can extend the conversation of uncertainty to mortgage-bond investors, particularly those in the private market. Public officials and private pundits alike have commented on the need for private money – which is virtually nonexistent – to return to the mortgage market. Private money matters, because it means a more diverse, more inclusive mortgage-lending market.

A recent New York Times article points out that there have been few private mortgage-bond deals in recent years. The reason is the banks that sell mortgage-backed bonds are waiting for regulators to finish drawing up rules aimed at strengthening the market.

The hold-up centers on loan down payments. Private lenders want more leeway on down payments, so private bonds can be issued on mortgages with lower down payment requirements. Regulators have balked at the request in the past, but today it appears they are more willing to compromise. Regulators are being pressured by lenders and consumer advocates. Both sides have cautioned against stringent down-payment requirements, arguing that restrictions would limit lending.

The regulators are listening, and that’s good news, because if they listen and act on what they hear, we could see lending extended to potential borrowers who are champing at the bit to get in the market and buy a home.

Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

Harrisburg PA Mortgage Market Recap – April 30, 2013

by Don Roth

Home sales at the national level continue to spin their wheels.

On the existing-home front, sales dropped 0.6% to an annual rate of 4.92 million units in March. When we look back to October 2012, we see that sales have, for the most part, plateaued.

Of course, when we speak of plateauing existing-home sales, we invariably speak of plateauing inventory. Supply, in fact, remains low at 4.7 months at the current sales pace. Only 30,000 units were added in March, which is 70,000 shy of the historical average March increase of 100,000 units.

The silver lining in this frustrating sales cloud is that low supply coupled with rising demand equals rising prices. Year over year, the median price is up a very stout 11.8%, which is on par with the boom days of 2005. (So we shouldn't expect the current price trend to hold indefinitely).

New-home sales also appear to be going nowhere fast. That said, they are at least lurching forward. New-home sales rose 1.5% to an annual rate of 417,000 units in March. Unfortunately, the increase was still 2,000 units short of what most economists had expected.

Supply is also tight in the new-home market. The number of new homes for sale rose by 3,000 units for March, but that wasn't enough to materially increase inventory, which remains at a low 4.4-months supply at the going sales pace.

Curiously, the median price of a new home at the national level fell 6.8% to $247,000. We are not particularly concerned, though; weaker pricing likely reflects a change in compensation – higher sales of lower priced homes – rather than a material change in overall demand.

So constrained inventory is an obvious issue, but so is tight credit, particularly for higher-amount non-conforming loans.

Rates remain very low, and have been very low for the past year, but we've yet to see a material pick up in purchase-application activity.

Uncertainty and risk – two subjects we've addressed repeatedly in the past six months – are by far the key constraints. Sequestration, regulation, taxes, Obamacare is to name a few of the most obvious uncertainty contributors.

When the perception of uncertainty is reduced, the economy grows, jobs become more plentiful, and lenders and regulators become less risk averse. Unfortunately, uncertainty remains elevated, and as long as it remains elevated the economy will continue to sputter and hiccup along.

 Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

 

Positive Conversations

We can extend the conversation of uncertainty to mortgage-bond investors, particularly those in the private market. Public officials and private pundits alike have commented on the need for private money – which is virtually nonexistent – to return to the mortgage market. Private money matters, because it means a more diverse, more inclusive mortgage-lending market.

A recent New York Times article points out that there have been few private mortgage-bond deals in recent years. The reason is the banks that sell mortgage-backed bonds are waiting for regulators to finish drawing up rules aimed at strengthening the market.

The hold-up centers on loan down payments. Private lenders want more leeway on down payments, so private bonds can be issued on mortgages with lower down payment requirements. Regulators have balked at the request in the past, but today it appears they are more willing to compromise. Regulators are being pressured by lenders and consumer advocates. Both sides have cautioned against stringent down-payment requirements, arguing that restrictions would limit lending.

The regulators are listening, and that’s good news, because if they listen and act on what they hear, we could see lending extended to potential borrowers who are champing at the bit to get in the market and buy a home.

Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

6 Tips For Cleaning Screens

by Don Roth

Just like people, no two screens have the same strength. You can use these methods for all screens, but be gentle if yours are more fragile.

  1. screensRemove your screens. For best screen-cleaning results, remove your screens from the window before getting started. If you’re just trying to clean your screens quickly, and they aren’t too bad (think 1-2 on the dirt scale), it’s okay to leave them in the window. You won’t get every nook and cranny clean, but it’s better than doing nothing. If your screens are any dirtier than that, we definitely recommend removing them from the window. Otherwise, you won’t be able to remove the large chunks of dirt (plus it will make a big mess).
  2. Dirt level: 1. If your screens are only a little dirty (and most of the dirt is loose) a lint brush is your new best friend! Roll over each screen on both sides two or three times to remove the loose dust. If this doesn’t do the trick, it’s time to take it to the next level.
  3. Dirt level: 2. If your screens are covered in dust and loose dirt, a vacuum cleaner is the way to go. Only use your vacuum cleaner if it has a soft brush attachment. Otherwise, you could risk damaging your screens. Place the soft brush attachment on the vacuum’s hose and run it lightly against each screen. Don’t push too hard or you could tear the screen! Vacuum both sides of the screen until the dust and grime are gone.
  4. Dirt level: 3. If you have dirt and caked-on grime all over your screens, they will need a little scrubbing to really get clean. Mix a solution of one tablespoon dish soap (you can substitute white vinegar for dish soap) with ½ gallon of lukewarm water. It’s best to do this outside to avoid making a mess. Tip: Wet your screens first with a garden hose. Then, dip a soft cloth in the solution and scrub both sides of the screens until the dirt and grime are removed. If your screens are fragile or thin, don’t push too hard! Rinse the soap away and let them dry completely before putting them back in the window.
  5. Dirt level: 4. If your screens look like they’ve been marinating in a mud pile for a year, you’ll need an old toothbrush to dislodge all of the grime. Mix a solution of one tablespoon dish soap (again, vinegar works, too) with ½ gallon of lukewarm water, and start gently scrubbing your screens with the brush until the grime is lifted. Rinse the screens thoroughly and let them dry completely before you reinstall them.
  6. Insect issues. If insects are sneaking through your screens, seal the holes on the bottom portion of your screen with clear nail polish. This should prevent insects from climbing through. This works for new screens and screens that have seen better days. For older screens, take a good look at the holes. If they seem larger than they were a year ago, it’s probably time to buy new screens. Note: If insects are dead-set on getting through your screens, this may not work because they’ll climb up the screen until they can fit through a hole. Instead, try some other pest prevention strategies.
Info provided by BrightNest.com.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

What is Gold Telling Us?

by Don Roth

Gold sold off big this past week, posting its largest two-day dollar drop ever, and its biggest percentage drop since 1980. Okay, but what does gold have to do with mortgage lending and housing?

Gold is considered a haven asset. Gold is an asset investors flock to when they are fearful, particularly if they are fearful over slow economic growth and inflation. When investors are fearful money flows to gold.

But the recent sell off points to money flowing out of gold. This tells us that investors are becoming less fearful and that more money will be flowing into other asset classes. This also tells us that more investors are expecting more economic growth – which is good news for housing and mortgage lending. When more people expect more economic growth, interest in housing rises and financing becomes easier to come by.

We mention gold because assets markets are interconnected: money flows from one asset class to another. Money flowing out of gold means more money will likely flow into stocks, real estate, and capital investment, which should help the economy and increase job opportunities and wages.

In other words, investors today are becoming more interested in growing wealth than preserving it. This is good news for the economy in general, and for large-item goods (like housing) in particular.

 Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

Harrisburg PA Mortgage Market Recap – April 23, 2013

by Don Roth

For the past year, we've been saying that housing will become an important variable in economic growth. The trend in housing starts is proving that's the case.

Starts were exceptionally strong in March, moving ahead 7.3% to an annualized rate of 1.036 million units. Looking year over year, total starts are up 46.7%.The multi-family component has been exceptionally strong, driven by increased investor demand. That said, the single-family component has also posted a robust gain, rising 28.7% year over year.

Housing construction is now running at a rate unseen since 2008.

Looking ahead, considerable upside still exists. Over the past two years, annual housing starts have increased to one million from 600,000. Despite the strong surge in starts, they remain 50% below the historical norm of 1.5 million annualized unit. In other words, housing is far from running the course.

In the interim, though, there are a few concerns. Permits declined 3.9% in March, falling to an annual rate of 902,000 units. The decline points to a slow down in building activity over the next month or two.

Builder sentiment also suggests something might be amiss in the short term. The National Home Builders Association sentiment index dropped two points this month to 42. This is the second-consecutive monthly drop, which pushes sentiment down to a six-month low.

Builders are citing a litany of issues for their souring outlook: low inventory (which more starts should rectify), falling buyer traffic, rising construction costs, and still restrictive lending (particularly construction lending).

We can't quarrel with the builders' complaints, but on a positive note we could be seeing a loosening of the purse strings on the lending front.

We see mortgage lending becoming more inclusive. We particularly like what is occurring in purchase lending. This past week, the Mortgage Bankers Association reported that the mortgage purchase index increased 4%, posting its highest activity level since May 2010. What's more, conventional purchase activity is up to levels unseen since October 2009.

More lenders are also showing a willingness to extend credit on lower down payments. It's especially encouraging to see more lenders willing to extend conventional mortgages with 5% to 10% down payments.

The positive trend in conventional loans tells us that regulatory concerns are receding and that lenders are becoming less risk adverse. This is good news, because we've been saying for some time now that we need a more diverse, more accommodating lending market. In other words, we need a more normalized market. This appears to be the direction the mortgage market is taking.

 Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

Where Did I Put That, Again? 5 Quick Organizing Tips

by Don Roth

If you’re not sure where to start wrangling your clutter, here are five real-life solutions to common clutter areas around the house. These tips were hand-picked from members of HomeTalk, an online home improvement cluttercommunity.

Your Pantry. When’s the last time you organized your pantry? If finding ingredients feels more like an epic-quest than a short step on the way to dinner, it’s time to reevaluate your cupboards. Using mason jars or labeled baskets like Design, Dining and Diapers is a great way to separate commonly used items from those holiday-specific sprinkles.

The Mail Room. So maybe you don’t have a mail room, but there’s probably a table, chair or floor space in your house that looks like one. Instead of letting the bills pile up, try this kitchen command-center idea from Domestic Imperfection. By sorting mail into “outbox,” “needs attention,” and “coupons and gift cards” bins, you’ll be able to focus on urgent stuff right away and save the catalogues for a later date!

Your Kitchen Counter. Your countertops are precious real estate, so clear the clutter with a wall storage system. No. 29 Design simply hung her baking supplies and gadgets a few inches off of her counter. Fill your rack with chalkboard paint labeled jars, and you’ve got yourself an art piece!

Your Jewelry Collection. We’ve touted how easy it is to organize jewelry with old teacups and baking pans, but what do you do if you want to hang your collection on the wall? Bles-ID suggests grabbing your vegetable steamer (how often do you really use that, anyway?) and tacking it up – it’s the perfect way to display earrings!

The Linen Closet. Makeup, toiletries, towels and beauty tools can quickly turn your linen closet into an organization disaster zone. Reevaluate everything in your closet periodically and toss anything you don’t use. When you’re reorganizing your closet, try rolling your towels like DIY Design Fanatic – they’ll take up less space and look better!

HomeTalk is an online forum where homeowners, renters and pros share ideas and help each other with home and gardening tasks. You can ask questions, see real-life examples and even give advice.

Information courtesy of BrightNest.com.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

Sputtering and Puttering

by Don Roth

It's encouraging to see more people acknowledge the housing recovery. Fannie Mae, in a recent housing survey, found that 48% of respondents believe home prices will rise in the next 12 months, while the percentage that expects prices to drop remains at a survey low 10%.

In addition, most of the respondents Fannie Mae's surveyed had an overall positive view of housing. Sixty-four percent – a high percentage – even said they would buy a home if they were to move in the next three years. (Let's hope they do.)

Though bullish on housing, these same respondents were much less bullish on the economy and their personal finances. Only 20% of respondents said their household income is higher today than it was a year ago. More discouraging, the percentage of respondents who believe their personal financial situation will worsen over the next year rose by 4 percentage points to 21%.

There's a dichotomy at work: housing doing well, many other segments doing not so well. We are unlikely to get a full-fledged housing recovery until the other segments of the economy start doing well.

For the other economic segments to do well, we need less uncertainty: That means clarification and consistency on regulations, taxes, and government spending. Until that occurs, much of the economy will continue to sputter and putter along, and this will eventually drag on the pace of the housing recovery.

Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

 

Harrisburg PA Mortgage Market Recap – April 16, 2013

by Don Roth

A month or so ago, we thought rising mortgage rates (or at least rates maintaining a higher plateau) would be the norm.

So much for prognostications: Mortgage rates dropped again this week; this time, on a disappointing jobs report, which showed the economy in March created far fewer jobs than most economists had expected. Jobs reflect economic growth, and if the economy isn't growing neither is loan demand... and neither will interest rates.

The Federal Reserve remains determined to keep mortgage rates low for the relevant future. Minutes of the most recent meeting of the Fed governors reveals most still support the on-going policy of purchasing $85 billion in longer-term Treasury and mortgage-backed securities each month.

The Fed's demand for these securities helps keep mortgage rates low because private buyers know there is a ready market for these securities, thus mitigating interest-rate risk – the risk of capital loss should interest rates rise.

Of course, rates are only one aspect of a lending market; quality of underwriting is another. The quality of mortgage loans over the past few years have undoubtedly gotten better. Moreover, the market as a whole, with government support, has improved markedly.

For instance, overall foreclosure and delinquency rates continue to improve. For this, we can look to stricter underwriting standards.

Of course, stricter underwriting standards can be a doubled-edged sword, especially if they are too strict. It can be argued they are. Most of us have had to deal with (particularly in the conventional side of the market) a potential borrower who was denied funding but was a reasonable credit risk.

The regulatory environment obviously impacts underwriting standards and loan-grant decisions. This environment certainly lists toward safety (perhaps too much), but at least a couple Federal Reserve officials are voicing support for less restrictive regulations.

Despite tighter lending, housing continues to be the one bright spot in the economy. Prices remain on an upward trajectory, as does home-builder activity. We don't expect these trends to change.

We say that because home prices remain far below their peak. In 2005, the median price of a new home was nearly $230,000. Today, it's closer to $175,000. What's more, homes are not only cheaper on an absolute basis, they're cheaper relatively speaking: Back in 2005, a new home went for 4.2 times the median buyer's income. Today, the ratio is down to 3.25 times.

There is still plenty of room for housing to run. Over the past 50 years, housing starts have averaged 1.46 million per month. In early 2006, the pace was more than 2.2 million. Today, housing starts run at a rate of less than 1 million. Looking ahead, we expect housing starts will remain an important economic propellant.

 Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

Tips For Hiring An Exterminator

by Don Roth

It doesn’t matter if it’s insects or rodents: pest invasions are never fun. Unwanted critters can wreak havoc on your home, spread diseases and give you a serious case of the shivers. If you wind up with a big pest problem, it’s important to call an exterminator rather than ignoring the issue or trying to deal with it yourself. A professional will be able to safely and fully restore your home to its former pest-free glory.

mouseBut choosing an exterminator can be intimidating. What traits should you look for? Are you getting a fair price? Can they really and truly get those racoons out of your basement? It’s important to be informed, because pest control can be expensive. Here’s what you need to know when hiring an exterminator:

1. Ask for credentials. Don’t be shy – you have the right to see the exterminator’s license! Before you hire, ask how their technicians are trained and what certifications they had to receive before being hired.

2. Check their history. Do some research to find out how long the exterminator has been in business. If a company has been serving your community for years, chances are they’re a trustworthy organization. Another great way to find a reputable company is by asking neighbors and friends who they used in the past (and whether or not they were satisfied). You can also use sites like Yelp for recommendations.

3. Get an estimate. Depending on the pest, different strategies for removal (i.e. chemical spray vs. setting traps) can vary widely in price. Make sure you get an estimate for each strategy, and then weigh the costs and benefits. For larger projects (like termites), it’s a good idea to get estimates from multiple companies so that you can choose who is best to tackle your problem. Note: Most professional exterminators should offer you some sort of guarantee for the pest removal – be wary if they don’t!

4. Demand thoroughness. A professional exterminator should inspect your home, confirm the specific pest problem and then present you with several possible solutions. Ask them to explain the pros and cons of each extermination method. Note: An exterminator who doesn’t seem very knowledgeable is a red flag! They should be able to explain the pest’s habits, why the invasion may have happened in the first place and how each extermination method will affect you and your home.

Information courtesy of BrightNest.com.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

Be Careful What We Wish For

by Don Roth

A mortgage-themed article in the Washington Post raised a few eyebrows this past week. The Post reports that the Obama administration is pushing to make more home loans available to people with weaker credit. Administration officials argue that making home loans available to less-qualified borrowers will help propel the housing industry (and the overall economy) forward.

We find it interesting that many Obama officials have forwarded some of the same arguments we've forwarded over the past year. In particular, officials want lenders to use more subjective judgment in determining lending standards. At the same time, they want the Justice Department to assure lenders that they will not face legal or financial recriminations if they make loans to riskier borrowers who meet government standards but later default.

We are all for less recriminations and more latitude in decision making, but it has to be implemented prudently. The financial meltdown that occurred in 2008 was largely attributable to a wide swath of mortgage loans that went south. Though more funded people would surely help housing and the economy at the moment, we have to ask, what's the risk?

Another default surge could easily bankrupt (permanently) Fannie Mae and Freddie Mac and sink the FHA. A housing bubble would also become a growing worry. The last thing the housing market needs at this stage are inflated home prices that prove to be unsustainable.

We would like nothing more than to have a more inclusive, less risk-averse mortgage market. But that market must be based on fundamentally sound lending principals.

 Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

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