Buyers had until April 30, 2010 to have a signed sales contract in hand and until June 30 to close the sale. Reid proposes to extend the closing deadline to September 30, 2010.

The National Association of Realtors estimates that as many as 180,000 home buyers who are under contract would be unable to close on or before June 30 to claim the credit. The NAR says mortgage lenders have been deluged with borrowers attempting to be approved before the end of this month.

NAR spokesperson Lucien Salvant said, “Time is of the essence. It’s important for Congress to get this done, because there’s a whole bunch of loans that aren’t going to close on time.”

It’s uncertain how many sales might not come to fruition because the buyer won’t reap the benefit of the tax credit. However, unless their contract contains a closing contingent on receiving the credit, it’s not likely there will be much wiggle room for buyers to back out of their commitment to purchase.

Additional support for this amendment was given by Senator Johnny Isakson, R-Ga., and Senator Christopher Dodd, D-Conn.

TALK BACK: Do you think the closing deadline to receive the tax credit should be extended? Why or why not? Post your comments below.

Posted by Sharon Walker

The White House, which theoretically will never be for sale, is also receiving some much-needed improvements, which will benefit its present occupants and others in years to come.

Your typical homeowner might not wait 50 years before investing in improvements, but that’s exactly the situation with the White House. Not since the Truman administration - 50+ years ago - has their been such extensive renovation work planned for the East and West Wings of 1600 Pennsylvania Avenue.

The project, which began last month, includes the replacement of the heating, cooling, electrical and fire-alarm systems and undefined security systems. The anticipated cost is $376 million, more than 100 times the cost of building the structure in the late 18^th century.

Work is expected to continue over the next four years. Approval for funding of the project was given by Congress in 2008.

Tourists visiting the White House can expect to see heavy machines and construction vehicles all along the North Lawn, which may not make for a picturesque backdrop for photos. If you wish to skip the sound of jackhammers and backhoes, stop by before 7:30 a.m. or after 6:15 p.m., which are designated construction work hours.

Posted by Sharon Walker

Another industry that has taken a hit is the real estate market.

Nationwide, the real estate market has been eking its way slowly toward a recovery. Although now expired, the federal government’s first-time home buyer and repeat home buyer tax credit gave a lift to the industry, for both existing and newly built homes.

However, with tar balls washing up on a 400-mile stretch of Gulf beaches, both buying and renting of beachfront property in those areas are taking a dive.

Owners of condominiums, who customarily rent out their properties during the summer months, are doing all they can to keep vacationers from canceling their reservations before making the trek to the Gulf. Some are offering mid-week cancellations, if the oceanfront proves less than inviting due to the oil spill.

Beachfront hotels, and real estate agents who handle vacation rentals, are encouraging vacationers to follow through on their reservations, some offering money-back guarantees or generous discounts. Gulf state visitor bureaus update their websites regularly regarding the condition and availability of their beaches, aiding tourists in making informed decisions.

In the meantime, BP continues to review and accept claims for loss of income or net profit, due to the oil spill. To date, roughly 14,000 individuals and businesses in Alabama, Florida, Louisiana and Mississippi have received the initial advance payment. A second payment will be going out to about 113,000 claimants from the above-mentioned states.

Including the initial payments, BP estimates it will have spent about $84 million for loss of income or net profit through the month of June. It’s expected this number will continue to grow as additional claims are filed.

Posted by Sharon Walker

As the theory goes, confidence matters to the economy because as confidence increases, consumer spending follows. Consumer spending accounts for 70 percent of the U.S. economy.

It’s why Wall Street is responsive to confidence data.

When consumer confidence is rising, households start to make big-ticket purchases they may have otherwise put off, including replacing old appliances, trading in an old vehicle or splurging on a vacation.

Rising confidence can also spur real estate sales.

When confidence is rising, a growing family that chose to “make do” in their 3-bedroom, 1.5-bathroom home may opt to move up to a 4-bedroom, 3-bath instead at a slightly higher monthly carrying cost. And there are families in every city in every state making those same decisions.

As a result, the potential home buyer pool increases and demand goes up. Increased demand has the potential to raise the value of homes.

The downside is that growing confidence tends to push conforming and FHA mortgage rates up. This is because an expanding economy draws investment dollars away from bonds and into stocks - including mortgage bonds.

The reduced demand for mortgage-backed bonds leads bond prices to fall and mortgage rates to rise.  Sometimes by a little, sometimes by lot.

So, if you’re buying a home or thinking of a refinance, rising confidence in the economy may be a signal to act sooner rather than later. Talk to your real estate agent and/or your loan officer about next steps and get your plan in place.

Posted by Ryan Leahy

This is a guest post by Ryan Leahy. He is a lender with Leahy & Associates in Austin, TX, and updates his blog daily. To contact Ryan, call (512) 692-7242 or email rleahy@houseloan.com.

That rate is the highest since October 2008.

New construction of single-family homes was at a rate of 593,000, 10.2 percent over the March prediction. Buildings with five units or more were at a rate of 68,000 in April.

Completion of privately owned homes was at a seasonally adjusted annual rate of 769,000. This represents 19.2 percent above the March estimate of 645,000; however, it is 8.7 percent below the rate of April 2009 which was 842,000.

Increases are attributed to the government’s tax credit for first-time home buyers and repeat buyers, which came to an end on April 30. Ian Shepherdson, economist for High Frequency Economics, noted, “The increase in demand prompted by the tax credit has lifted construction. But the expiration of the credit … has made homebuilders wary about continuing to add new homes during the summer.”

It’s antcipated that without the benefit of the tax credits, home sales will diminish the last half of this year. Bearing this out is the fact that permits for new home construction fell to a seasonally adjusted annual rate of 606,000, down 11.5 percent from a March estimate of 685,000.

Posted by Sharon Walker

The flip side of that coin is 43 percent of homeowners said their home decreased in value over the same time period. That number is down from the previous quarter, which registered 48 percent of homeowners.

Low interest rates and appealing home prices were the reasons 75 percent of homeowners see current home purchasing conditions as good.

When asked about selling a home, 89 percent responded that market conditions were poor, due to the decline of home values. However, this response showed an improvement from the May 2009 survey, which reported that nearly 100 percent of those questioned felt market conditions for selling were unsatisfactory.

In spite of these less-than-stellar figures, homeowners feel their home will eventually rise in value and expect an average annual gain of 2.1 percent over the next five years.

TALK BACK: Do you agree with the survey results? How do you feel about the value of your home? Post your comments below.

Posted by Sharon Walker

According to the National Association of Home Builders quarterly Home Opportunity Index, more than 72 percent of all new and existing homes sold between January-March 2010 were affordable to families earning the national median income.

It’s the second-highest reading in the survey’s history.

Of course, on a city-by-city basis, home affordability varies.

In the first quarter of 2010, for example, 98.7 percent of homes sold in Bay City, Michigan, were affordable for families earning the area’s median income and in Indianapolis, the percentage was almost 95 percent.

Indianapolis has held the top quarterly ranking for close to five years now.

On the opposite end of the spectrum, the White Plains, NY-Wayne, NJ region earned the “least affordable” metropolitan area for the 8th consecutive quarter. Just 20.9 percent of homes are affordable to families earning the local median income.

The rankings for all 225 metro areas are available on the NAHB website but regardless of where your town ranks, home affordability remains high as compared to historical values - but it likely won’t last long.

All things equal, buying a home may never come this cheap again. If you were planning to buy later this year, consider moving up your time frame.

Posted by Ryan Leahy

This is a guest post by Ryan Leahy. He is a lender with Leahy & Associates in Austin, TX, and updates his blog daily. To contact Ryan, call (512) 692-7242 or email rleahy@houseloan.com.

“The upswing in April existing home sales was expected because of the tax credit inducement, and no doubt there will be some temporary fallback in the months immediately after it expires,” said NAR chief economist, Lawrence Yun.

Yun also maintains that there were other elements bolstering the housing market and enticing home buyers. “For people who were on the sidelines, there’s been a return of buyer confidence with stabilizing home prices, an improving economy and mortgage interest rates that remain historically low,” he said.

The NAR further reported that homes sold at a seasonally adjusted annual rate of 5.77 million units in April. This was the best showing in five months and better than the 5.36 million in March. In addition, sales were up 22.8 percent from sales of 4.70 million in April 2009.

Posted by Sharon Walker

Freddie Mac vice president and chief economist Frank Nothaft commented,

“Average interest rates on 30-year and 15-year fixed-rate mortgage loans remained extraordinarily low during the first quarter, averaging 5 percent and 4.38 percent respectively. With fixed-rate interest rates near a generational low and initial rates on hybrid adjustable rate mortgages close to fixed-rate levels, large numbers of homeowners have chosen fixed-rate loans for refinance.”

In choosing these refinance terms, homeowners feel better equipped to meet their monthly obligation knowing both the principal and interest payments will remain constant over the course of the loan. Many borrowers are now anticipating paying down their mortgage faster by opting for a shorter loan term as well.

TALK BACK: Have you refinanced your home loan, and did you choose a fixed rate or adjustable rate mortgage? Which do you prefer and why? Post your comments below.

Posted by Sharon Walker

Defective drywall, manufactured by KPT, had been used in some of the homes built by Beazer in southwest Florida. Beazer, among many other builders, was unaware of the condition of the drywall. Once problems began to arise, homeowners then pressed Beazer to make reparations, at the builder’s expense.

Beazer in turn has used the courts to receive financial compensation for the repairs that stemmed from KPT’s faulty product.

Partner Don Hayden of law firm Baker & McKenzie,  which represents KPT, had this to say in a press release:

“KPT has been in discussions with builders in recent weeks seeking a reasonable solution to repair homes built with KPT drywall. The settlement with Beazer is part of KPT’s effort to get this issue behind them and move forward. It shows that a solution is possible when there is agreement on reasonable repair costs. This settlement is further proof of KPT’s commitment to cooperate with homebuilders, federal courts, regulators and official organizations. We will continue to work with these parties to ensure concerns pertaining to KPT drywall are addressed and properly fixed.”

KPT has been accused in nearly 200 lawsuits, by both U.S. homeowners and builders, of producing defective drywall, which rendered many homes valueless and unhealthy to occupy.

It’s been reported that KTP is in private settlement talks with as many as 10 other builders. The details of this first settlement is expected to be made public in the very near future.

Posted by Sharon Walker