President Bush signed a housing bill last week that may save thousands of Americans from losing their homes.  The legislation gives struggling homeowners the ability to refinance their existing, higher interest-rate loans into new, fixed-rate mortgages issued by the Federal Housing Administration.  The banks holding the existing debt, however, are not required to release the borrowers to refinance with the government, and may choose to keep the mortgages in place.  The banks run the risk that frustrated homeowners end up walking on their existing debt, leaving the banks no option other than to foreclose on the properties (source: BTN Research).   



While US equity investors wait for the earnings strength of companies to come back, stocks continue to benefit from the fall in oil and gas prices.  In just the last 3 weeks, the price of oil has fallen $20 a barrel (from $145 to $125) and the price of gasoline has dropped nearly 22 cents a gallon nationwide (from $4.11 to $3.89).  Since every penny decrease at the gas pump saves Americans $3.9 million per day, a 22 cent price drop equates to $86 million of money not being spent at the gas pumps per day (source: AAA).     



Americans will elect their next president 3 months from today (11/04/08).  They will choose either Barack Obama (making him the 4th youngest elected president ever) or John McCain (making him the oldest elected president ever) to occupy the White House on 1/20/09 (source: BTN Research).   



Notable Numbers for the Week:



1.        WE CAN CONSERVE - American drivers put 255 billion miles on their cars and light trucks in May 2008, but that total was down 9.7 billion miles from the total miles driven in May 2007 (source: DOT). 



2.        TAX STAT - The top 5% of US taxpayers have adjusted gross incomes of at least $153,542.  This group pays 60% of all federal income taxes paid by individuals (source: Tax Foundation, IRS). 



3.        OUTDATED - Even though 78% of business owners have an estate plan in place, 89% of this group have failed to update their document due to a marriage, divorce, birth or a death (source: Bank of America). 



4.     AVOIDING FORECLOSURE - In order for a homeowner to qualify for assistance under the housing bill signed by President Bush last week, the individual or couple must be spending at least 31% of their monthly income on their mortgage payment and they must be living in the home (source: Library of Congress).



5.        POLITICS - Democratic Presidential candidate Barack Obama turns 47 years old today.  If he is elected to be the 44th US president on 11/04/08, Obama would be the 4th youngest man voted into the White House, trailing only John F. Kennedy (age 43 years, 236 days), Bill Clinton (46 years, 154 days) and Ulysses S. Grant (46 years, 236 days).  The Democratic Convention begins 3 weeks from today in Denver, CO (source: BTN Research).   



Your referrals are always appreciated

David Cool, REALTOR & Mortgage Broker

904 338-4601

INI, Realty Investments Inc.