What Could Happen if Fannie Mae and Freddie Mac Go Public Again?

by Bene Foley

The Big News

Fannie Mae and Freddie Mac—two of the most important companies behind U.S. home loans—might be taken public again by the end of 2025. Reports say the plan could value them at $500 billion, with the government raising around $30 billion. Their stock prices jumped about 20% on the news.

Both companies have been under government control since the 2008 financial crisis, when they were bailed out to keep the housing market afloat.

Why It Matters for Mortgage Rates

For everyday homebuyers and sellers, the main question is: Will this make mortgages more expensive?

If the companies are privatized without the government backing their loans, experts say mortgage rates could rise by 0.6% to 0.9%.
If the government keeps its guarantee in place, rates could actually stay the same or even go down, depending on how fees are handled.

In short: it all depends on the deal’s structure.

Risks and Rewards

If the government continues backing Fannie and Freddie, it could help keep rates lower, but it also means taxpayers could be on the hook if the housing market crashes again.

Industry groups, like the National Association of Realtors, have pushed for a “utility-style” model: one where the government guarantees loans but limits how much profit the companies can make, to reduce risk.

Political Moves Behind the Scenes

The Trump administration has reshaped the leadership at both companies, installing loyalists on their boards. This suggests the government has strong influence over whatever plan moves forward—whether the two firms are merged into one, kept separate, or sold off gradually.

A Look at the Numbers

Fannie Mae backed about $64 billion in purchase loans last quarter.
Freddie Mac supported $76 billion, with more than half going to first-time buyers.
Both companies are still profitable, but their recent earnings dipped as they set aside more money for possible future losses.

Bottom Line

For homeowners and buyers, the possible public offering of Fannie Mae and Freddie Mac could shift mortgage rates depending on how much government support remains. The outcome could either help keep loans affordable—or add extra costs for borrowers.

Bene's Blog • garden • homeownership • August 12, 2025

When Landscapes Hurt Your House

by Bene Foley

I have been trying to get my husband to take out the shrubs that line the edges of my home. He wants to keep them because a) they protect the paint and siding from direct sunlight on the south side, b) they are green and lush, and c) they conceal the front porch enough that people won’t be tempted to steal packages off our porch. The Wall Street Journal just published an article that supports my argument. Here is is, in a nutshell:

Key Takeaways

Foundation-Risky Landscaping: Planting shrubs and hedges close to your home’s foundation may seem charming—but it can cause serious damage over time. Root systems retain moisture that can lead to mildew, moisture intrusion, blocked vents, and even invite termites to nest behind the façade.
Vulnerability to Wildfire: In some regions, dense vegetation against the foundation also increases the home’s risk of wildfire damage.
Expert Solutions: The columnist consulted with horticultural and design experts, who recommend thoughtful alternatives—like planting with proper setbacks or choosing landscape designs that minimize foundation and fire risk.

Practical Recommendations

Avoid placing shrubs or hedges directly next to your foundation to reduce moisture buildup and enhance airflow.
Leave a buffer zone between plantings and the house to discourage pests and moisture damage.
Consult professionals or landscape designers to select foundation-friendly and fire-safe plantings.

Note the photo above: This builder, in an attempt to add curb appeal, planted shrubs that are pretty much guaranteed to cause problems in the future!

I read this and wanted to know what a good buffer zone would be. The internet is full of advice–all different. And the main problem I have with any of the suggestions is that when someone plants something 2 or 3 feet from the foundation (as many sites suggest), as years go by the shrub gets bigger and bigger, roots growing closer and closer to your foundation. So, my inexpert advice? Put in plants that don’t get big with age. If you insist on sturdier bushes, plant them so that even their branches at maturity don’t touch the house. This means at least 5 feet or so depending on the shrub or tree you choose.

Bene's Blog • buyers • market news • Sellers • August 5, 2025

Mortgage Rates Dip Slightly, But Housing Market Remains Slow

by Bene Foley

The average interest rate on a 30-year mortgage has ticked down slightly, offering small relief for those looking to buy a home. Rates fell to 6.72% this week, a small drop from last week’s 6.74%, bringing them back to levels seen earlier this month. One year ago, rates were almost exactly the same.

Homeowners looking to refinance also saw a small improvement. The average rate for a 15-year mortgage dipped to 5.85% from 5.87% last week. This time last year, it was 5.99%.

While these small drops are welcome, mortgage rates are still high compared to the lows seen during the pandemic. Elevated borrowing costs have continued to slow home sales, a trend that began back in 2022 when rates started rising.

Mortgage rates are influenced by several factors, including the Federal Reserve’s interest rate decisions and how investors in the bond market view the economy. One of the key indicators lenders use is the yield on the 10-year Treasury note, which recently slipped to 4.34%.

Although the Federal Reserve left its main interest rate unchanged this week, there’s still uncertainty about what will happen in the coming months. Inflation remains above target, and the job market continues to show strength, which could delay any rate cuts.

So far this year, the average 30-year mortgage rate has hovered near its peak of just over 7%, reached in January. The lowest point came in April when it briefly dropped to 6.62%. Forecasts from housing experts suggest that rates may gradually fall to around 6.4% by the end of the year, but not enough to significantly boost home sales.

Recent data points to a continued slowdown. Pending home sales—contracts signed but not yet finalized—fell 0.8% in June and are down 2.8% compared to the same month last year. Since final sales often occur a month or two after a contract is signed, this may indicate a further drop in upcoming closings.

The sluggish housing market is reflected in the national homeownership rate, which has stalled at around 65%. This is the lowest level since 2019 and below the long-term average of about 66%.

Even with slightly lower rates, mortgage applications dropped 3.8% last week, reaching their lowest point since May. Despite this decline, applications were still higher than they were a year ago.

Uncertainty around interest rates, inflation, and the job market continues to weigh on homebuyers, leaving many hesitant to make a move.

I work with mortgage brokers that offer rate discounts for my clients (whether on the buy side or the selling side). This can reduce your mortgage to the rates you have been waiting for. Once again, the Portland market continues to be hyper-localized, so feel free to reach out if you have any questions about your neighborhood.

Bene's Blog • Sellers • July 8, 2025

New SALT Deduction Expansion: What the Higher Cap Means for Taxpayers

by Bene Foley

On July 4, 2025, the President signed into law the domestic spending and tax reform package known as the One Big Beautiful Bill Act.

One piece of this legislation is the expansion of the state and local tax (SALT) deduction. Many taxpayers are wondering what a higher cap could mean for their wallets. This change will quadruple the current SALT deduction limit for five years starting in 2025 — a significant shift with uneven impacts across income brackets and regions. Here’s a clear look at what the change would do and who stands to benefit the most.

Background:
The SALT deduction is a tax break that lets taxpayers deduct what they’ve paid in state and local taxes (like income tax, property tax, and sometimes sales tax) from their federal taxable income.

In 2017, the Tax Cuts and Jobs Act capped this deduction at $10,000 per year for individuals or married couples filing jointly. This cap has been controversial, especially in high-tax states (like New York, New Jersey, and California) where taxpayers often pay much more than $10,000 in state and local taxes.

What this new provision does:
The new bill will temporarily raise the cap — quadrupling it — for five years starting in 2025. So instead of being limited to $10,000, taxpayers can deduct up to $40,000 in state and local taxes.

In short:
From 2025 through 2029, taxpayers can now deduct up to $40,000 in state and local taxes paid each year, reducing their federal taxable income and potentially lowering their federal tax bill. After five years, the cap will revert back to $10,000 unless extended or changed again.

Who benefits?

📍 1. Higher-income households in high-tax states

The people who get the biggest boost are upper-middle and high-income taxpayers who:

Pay significant state income taxes, property taxes, or both.
Live in states with high tax rates (like California, New York, New Jersey, Connecticut, Massachusetts, and Oregon).
Have enough total deductions to itemize instead of taking the standard deduction.

Example:
A couple in New Jersey who pays $25,000 in state income taxes and $15,000 in local property taxes currently can only deduct $10,000 of that from their federal income taxes. They can now deduct the full $40,000 instead of being limited — lowering their taxable income by an extra $30,000.

📍 2. Homeowners with high property taxes

Even in states with moderate income taxes, people who own expensive homes (and pay high property taxes) benefit. This is why many suburban homeowners in states like Illinois, Texas (which has high property taxes but no state income tax), or parts of the Midwest could see savings too — if their total state and local tax bill pushes them above the old $10,000 cap.

📍 3. Taxpayers who already itemize deductions

The SALT deduction only matters for people who itemize deductions on their federal taxes instead of taking the standard deduction (which is about $14,000–$29,000 for 2024, depending on filing status).

Higher earners are more likely to itemize because they have bigger deductions (mortgage interest, charitable donations, medical expenses, plus SALT).
Middle- and lower-income taxpayers usually take the standard deduction, so they wouldn’t see much impact.

Who doesn’t benefit much?

Renters in low-tax states.
Homeowners whose total SALT bill is already below $10,000.
Taxpayers who don’t itemize.

✅ Big picture

The main benefit goes to wealthier households in high-tax, often coastal or urban states — which is why the SALT cap has been politically contentious. Critics argue raising the cap mostly helps the well-off, while supporters say it protects taxpayers from “double taxation” and helps keep high-cost states affordable for middle- and upper-middle-income professionals.

Bene's Blog • buyers • market news • Sellers • July 1, 2025

What Housing Inventory Trends Mean for Homebuyers and Sellers

by Bene Foley

When it comes to real estate, what’s happening on one street might look entirely different just a few blocks away — and that’s especially true here in Portland, Oregon. Housing inventory trends continue to shape how buyers and sellers approach the market, and understanding these shifts can help you plan your next move wisely.

In Portland, we’re seeing a clear split: well-maintained homes that require little to no updating are attracting eager buyers right away. These move-in-ready properties often sell the first weekend they’re listed and can bring in multiple offers, sometimes above the asking price. On the other hand, homes that need some updates or minor repairs tend to linger on the market much longer — sometimes anywhere from a month to three months — and usually receive offers below the initial list price.

These patterns mirror broader trends nationwide, but each Portland neighborhood has its own micro-market with unique dynamics. For buyers, this means being prepared to act quickly and make strong offers on turnkey homes, while sellers with properties needing work may need to adjust expectations or consider making updates before listing.

Whether you’re hoping to buy or sell, keeping an eye on local inventory shifts — and knowing where your property fits in — can help you stay competitive and make the best decisions for your situation.

Uncategorized • June 17, 2025

What Housing Inventory Trends Mean for Buyers and Sellers

by Bene Foley

If you’re thinking about buying or selling a home, one factor that can have a major impact on your experience is housing inventory—the number of homes available on the market. Inventory affects everything from pricing to how quickly homes sell, and even small changes can shift the balance between buyers and sellers.

But remember: real estate is local. Trends you hear about on the news might not match what’s happening in your specific neighborhood or price range.

Why Inventory Matters

The housing market is shaped by the classic rules of supply and demand. When there are fewer homes for sale, competition among buyers can drive prices up. On the flip side, when more homes are listed, buyers often have more negotiating power, which can lead to better deals and more flexible terms.

Short-Term Changes vs. Long-Term Trends

You’ve probably noticed that housing activity varies by season. Fewer homes tend to go up for sale during the holidays, but there are usually fewer buyers too, which keeps things fairly balanced. Spring, by contrast, often brings both a wave of new listings and renewed buyer interest.

But there are also larger patterns to watch. For instance, when inventory remains low for an extended period, prices tend to rise and stay elevated. Reversing that trend typically requires a steady increase in homes for sale.

What This Means for Buyers

In a market with limited inventory, some buyers decide to wait in hopes that prices will come down or more options will appear. Others feel the pressure to act quickly and make strong offers to beat the competition. If you’re buying, your level of motivation, financial readiness, and ability to act decisively all come into play.

Being strategic is key—especially if you’re competing with multiple buyers. You may need to be flexible on things like closing timelines or offer terms. It helps to understand what’s driving competition in your local market.

What This Means for Sellers

If there are more homes on the market, buyers will have more choices—and sellers may need to work harder to stand out. That could mean pricing your home more competitively or offering extras, like help with closing costs or a rate buydown, to attract serious buyers.

If inventory is tight, though, sellers may benefit from faster sales and stronger offers—especially if their home is priced appropriately and well-prepared for showings.

Other Factors at Play

Housing inventory isn’t the only thing influencing the market. Interest rates, job stability, and overall economic confidence all play a role in how buyers and sellers behave. For example, when mortgage rates rise, some buyers step back—but in growing areas like Southern Nevada, strong local demand can keep the market active even when other regions slow down.

Right now, we’re seeing an increase in homes coming to market. If you’re selling, that means paying close attention to pricing and being prepared for more negotiation. New home builders offering incentives can also create more competition, so it’s worth knowing how your listing compares.

The Takeaway

Whether you’re buying or selling, understanding housing inventory gives you an edge. And while national trends can offer some insight, the most important information is what’s happening in your area—your neighborhood, your school zone, your price point.

I help clients stay informed so that they can make confident decisions in today’s shifting market.

Bene's Blog • home ownership • homeownership • June 4, 2025

Oregon Lawmakers Set Ambitious Goal to Expand Homeownership by 2030

by Bene Foley

In an effort to promote economic stability and generational wealth, Oregon legislators have approved a plan to significantly increase homeownership across the state. The goal is to help more than 30,000 additional residents become homeowners by the year 2030.

House Bill 2698, passed by the Senate with a 23-6 vote, establishes a target homeownership rate of 65% by the end of the decade. The bill also sets additional growth benchmarks of 1.65% for each of the following 5-, 10-, and 15-year periods. To monitor progress, it requires the Oregon Housing and Community Services Department to create a public dashboard, which will include data broken down by race and ethnicity to track disparities and ensure equitable outcomes.

Current data shows that homeownership in Oregon stands at 63.4%, placing the state 39th nationwide. Racial disparities remain significant: a higher percentage of white and Asian residents own homes compared to Black, Hispanic, and Native American residents.

Oregon’s housing challenges have developed over time due to limited new construction, population growth, and wage stagnation. Today, more than 240,000 low-income households exist in the state, but only around 113,000 affordable housing units are available to them.

While the bill doesn’t attempt to address every factor contributing to the housing crisis, lawmakers see it as a foundational step for guiding housing policy moving forward. By setting measurable objectives and tracking outcomes, the state aims to more effectively plan and prioritize housing efforts.

The bill passed the House earlier by a wide margin and now heads to Governor Tina Kotek for final approval. If enacted, it would take effect immediately.

Debate Over Supply and Policy Tools Continues

Although most lawmakers supported the initiative, some raised concerns that setting goals without directly increasing the housing supply will not be enough to address the scale of the problem. A state-commissioned report released in January estimated that Oregon needs to build nearly 29,500 homes annually—primarily in the Portland metro and Willamette Valley regions—to meet current demand.

Critics of the bill expressed skepticism that progress can be made through tracking dashboards and benchmarks alone. They argued that meaningful solutions will require policy changes that make it easier to build more housing across the state, especially in communities that have historically resisted new development.

Bene's Blog • buyers • May 20, 2025

How to Recognize a Home with Good “Bones”

by Bene Foley

When you’re shopping for a home, it’s easy to get swept up by trendy fixtures or discouraged by dated wallpaper. But one of the smartest things you can do is look beyond the surface and ask: Does this house have solid bones?

This common real estate term refers to the quality and integrity of the home’s structure and core systems — and it can make a huge difference between a wise investment and a financial headache down the road. Here’s how to tell if a home is built to last.

1. A Sound Foundation – Literally and Structurally
The foundation is one of the most important (and expensive) parts of a house to repair. Watch for visible cracks, especially around windows and door frames, uneven floors, or doors that stick. These could be signs of foundation movement or settling. Hairline cracks can be normal, but anything wider than ¼ inch is worth a closer look by a professional.
Pro tip: Ask whether a recent foundation inspection or structural assessment has been done.

2. A Layout That Makes Sense
Cosmetic changes are relatively easy. But reworking a home’s floor plan? That can quickly drain your budget. A home with a sensible flow, good natural light, and functional space is a great foundation for future upgrades. Open-concept isn’t always best — the key is a layout that fits your lifestyle.

3. Systems in Solid Shape: Roof, Plumbing, Electrical
These major systems are critical to the home’s longevity. A roof nearing the end of its life, outdated electrical wiring, or original plumbing may not be deal-breakers — but they should factor into your financial planning.
Good indicators: A newer roof (under 15 years), copper or PEX plumbing, and a modern electrical panel are all solid signs.

4. Quality Windows and Doors
Drafty, rotting windows can impact both comfort and energy bills. Look for double-pane windows, smooth operation, and solid construction. Even original windows in older homes can be fine if they’ve been well maintained or upgraded with weather-stripping and storm panes.

5. A Sense of Stability
Some homes just feel well-built. Doors latch smoothly, floors feel firm, and materials seem solid — not flimsy. Older homes, in particular, often feature durable finishes like plaster walls and hardwood floors that signal long-term quality.

A Quick Reality Check:
With construction costs on the rise — partly due to ongoing tariffs on materials — and the City of Portland announcing increased permitting delays and potential cost hikes, repairs and renovations may take longer and cost more than they used to. That makes buying a home with strong bones all the more important.

The flashiest home isn’t always the best investment. A house with good bones gives you a sturdy base to work from — and peace of mind that you’re not starting your new chapter with costly surprises.

Bene's Blog • Sellers • May 13, 2025

Portland Home Sellers’ Dilemma: Should You Fix It or Leave It?

by Bene Foley

Thinking of listing your Portland home before the summer selling season winds down? One of the biggest questions you’ll likely face is: “What needs to be repaired, replaced, or upgraded before I go to market?”

Most home repairs fall into three key categories for sellers: those necessary to pass appraisal, upgrades that could boost market value, and repairs that may be negotiated with the buyer post-offer.

Prepping for a Portland Home Appraisal

If your buyer is using a mortgage — which, according to a 2017 report by the National Association of Realtors, applies to 88% of buyers — then an appraisal will be part of the process. Even some cash buyers opt to bring in an appraiser to confirm property value.

An appraiser is hired by the lender to verify that the home is worth what the buyer has agreed to pay. If major problems are found that affect the home’s safety or livability, the lender may decline the loan.

To avoid surprises, many sellers in Portland bring in a real estate agent for a pre-listing walk-through. They’ll help spot potential issues that could flag the appraiser’s attention, such as:

Peeling lead-based paint (especially in homes built before 1978)
Wobbly or missing railings on stairs and decks
Non-functioning heating, cooling, electrical, or plumbing systems
Roof leaks or water damage
Structural cracks or signs of foundation issues
Water intrusion in the basement or crawl space
A roof in poor condition or near the end of its lifespan

If your home has any of these problems, a buyer relying on traditional financing may have difficulty closing the deal. While renovation loans exist, most buyers prefer move-in-ready homes.

Do Home Improvements Add Value?

Some sellers go overboard, pouring money into last-minute remodels. But the truth is, not all improvements pay off. Many updates bring a limited return on investment.

Still, some upgrades can be worthwhile — especially if they help your home compete at the top of the price range for your neighborhood. A knowledgeable real estate agent can help you identify changes that are likely to make an impact with buyers.

Insights for Portland Home Sellers

Given Portland’s emphasis on sustainability and curb appeal, the following projects are particularly beneficial.

Energy Efficiency Upgrades: Enhancing insulation, sealing ducts, and updating HVAC systems can improve your home’s energy score, appealing to eco-conscious buyers.
Minor Kitchen Remodels: Updating cabinet fronts, countertops, and appliances can yield a high ROI, especially when keeping the layout intact.
Deck Additions: Portland buyers value outdoor living spaces. Adding or updating a deck can enhance appeal and functionality.

Post-Offer Repair Considerations

When deciding on repairs to do pre-listing, it is important to remember that after having an offer accepted, buyers may request repairs based on inspections. Every inspector will find some things that need to repaired (even on new construction). Here’s how to approach these requests:

Assess Affordability and Timeline: Determine if the repairs are cost-effective and can be completed before closing.
Negotiate Strategically: Consider offering a credit or price reduction instead of undertaking repairs, allowing buyers to handle them post-purchase.
Consult Your Agent: A seasoned real estate agent can provide guidance on which repairs are reasonable and how to negotiate effectively.

By focusing on high-ROI projects and approaching repairs strategically, you can enhance your Portland home’s marketability and achieve a successful sale.

If you need assistance or advice, feel free to ask!

Uncategorized • April 29, 2025

Texas Bill May Limit NAR’s Hate Speech Policy

by Bene Foley

A new bill under review in the Texas Senate may soon limit how professional associations, including the National Association of Realtors (NAR), handle violations of their codes of conduct—especially those related to hate speech.

What Is Senate Bill 2713?

Senate Bill 2713, introduced by Senator Mayes Middleton (R-Galveston), would prevent trade or professional organizations from denying or revoking membership based on someone’s legally protected speech or assembly—regardless of the organization’s internal rules.

The bill also reinforces that groups cannot exclude someone based on race, religion, sex, disability, or other protected characteristics, and allows individuals to take legal action (including seeking damages and attorney fees) if they believe their rights have been violated.

How This Affects NAR and Realtors in Texas

The National Association of Realtors currently enforces a Code of Ethics that includes Standard of Practice 10-5. This standard prohibits Realtors from using hate speech, epithets, or slurs based on race, ethnicity, religion, and other protected categories, even outside of work settings (such as on social media).

If SB 2713 becomes law, NAR’s ability to enforce this standard in Texas could be weakened. That means Realtors might no longer face disciplinary action from the association solely for certain speech-related violations, depending on how the bill is interpreted and enforced.

Supporters and Opponents

At a recent committee hearing, several individuals who had been previously investigated or penalized under NAR’s ethics rules spoke in favor of the bill, saying they felt they were punished for expressing personal or political beliefs.

The Texas Association of Realtors has taken a neutral stance on the legislation, and the bill is still pending in the Senate committee.

What Happens Next?

If passed, the bill would go into effect on September 1, 2025. Its impact could extend beyond real estate to other professional industries with similar codes of conduct.

What This Means for Clients

For clients, this legislation does not change existing laws about housing discrimination. Realtors are still bound by the federal Fair Housing Act, which prohibits discrimination in the sale or rental of housing.

However, the bill may shift how Realtor associations handle internal discipline, particularly when it comes to speech or conduct outside of direct client interactions.