Laws Doing More Harm Than Good

September 5, 2006 Posted In Economic News Real Estate News

NAR recently advised Congress that two bills that they have passed may be hindering the local housing market as well as other real estate markets across the country.

According to Thomas M. Stevens, president of NAR, that the combined effect of the two regulatory proposals are prompting banks either to avoid making loans for sound real estate ventures or to increase the cost of capital required for commercial real estate transactions.

This means that when you go to purchase a home or condo that you, as a consumer, are either going to be turned down for your loan or you will be expected to pay outrageous interest rates.

Stevens says that these type of laws discourage lenders from lending and thus hurts the consumers.