NEW RULES

"WASHINGTON, D.C. - The U.S. Senate announced it was moving forward on a controversial housing bill that industry groups believe would lead to stricter lending standards and higher interest rates. S. 2636, the Foreclosure Prevention Act of 2008, was intended to help ease the foreclosure crisis. The most controversial aspect of the bill is that it would actually change bankruptcy laws by giving judges the latitude to reduce interest rates and the amount that is owed on the mortgages of at-risk homeowners."

This piece from National Realty News is worrisome for the housing market, because the ability of judges to invalidate contracts between lenders and borrowers, thereby raising lenders' risks. In turn, that will raise interest rates.

Luxury Homes at Tyler Texas Real Estate, http://www.johncmartin.com/ are available right now at historically low interest rates.