Home ownership is the fulfillment of the American Dream. But it was the implosion of the sub-prime mortgage-lending industry that ignited the global recession in 2008. Enabling Americans with bad credit to take out adjustable-rate mortgages they ultimately could not afford proved disastrous to the lenders, the homeowners, and the entire economy. The Obama administration jumpstarted sales last year with special first- and second-time home-buyers' tax credits, but once those credits expired, so did the purchasing. (For a sobering look at where we are, including the steep housing drop-off, check out David Rosenberg's analysis and slideshow. He makes the argument that we're actually in a depression.)

In a further sign of the troubled times, state Supreme Court Chief Justice Ron Castille has summoned county court leaders to an Oct. 14 summit in Harrisburg to develop "foreclosure mediation programs" in anticipation of a second wave of foreclosure filings across the state.

Thursday night's Smart Talk features a panel that includes Eric Veronikis, a reporter for the Central Penn Business Journal who covers the housing industry; Don Roth, president of the Pennsylvania Association of Realtors; Kate Newton, director of homeownership programs at the Pennsylvania Housing Finance Agency; and Liz Hersh, executive director of the Housing Alliance of Pennsylvania.

Hersh argues that Pennsylvania has a "steak and caviar market with a burger and fries workforce." She says there is an abundance of higher- and middle-income housing but a severe shortage in low-income properties for rent and to purchase. She'd like to see lawmakers and the industry balance out the growth to give folks options to purchase or rent properties at a price point they can afford.

Mortgage banker Andrew Vinarski of Primary Residential Mortgage in Camp Hill says record-low rates have sparked interest but not as many sales. " ... the Central PA market was not affected in the same way by the housing crisis compared to many other markets. For the most part, in the past few years, valuations on existing homes have remained level here," he explains. "Although homes are not selling in record volumes as they did just a few years ago, through both low interest rates, and the Federal Government's tax credits for both first time buyers and move up buyers, the market is still ripe for both buyers and sellers. Locally, refinancing applications have been up for the past 6 months. Many borrowers are looking to take advantage of all time low interest rates. But, the volume of refinance applications is not what it has been compared to the last few refinance booms. This is primarily due to the fact that many homeowners already have a low interest rate and often it does not make sense to pay for closing costs for a slightly lower interest rate versus the amount of money they may save via the slightly lower mortgage payment."

Vinarski believes rates will likely remain low until there's clear evidence of an economic and housing recovery. And, he cautions, that those seeking and offering loans will face deeper scrutiny. "Lenders have introduced tighter lending guidelines. These include requiring higher credit scores, full income and asset documentation requirements (no more stated income loans), larger down payment requirements, more thorough review of appraisals, etc.. Potential mortgage loan borrowers who are seeking out financing may not qualify today when they may have just eighteen months ago. We in the industry are preparing for even greater guideline tightening. This will continue to be the norm for years to come," Vinarski adds.

For those who just want to refinance at this time, Vinarski offers a few questions to consider: "Are you looking to obtain a lower interest rate? Are you looking to take cash out to pay off debt or begin a project? Will you be staying in the home long enough to take advantage of the long term savings by refinancing? A licensed mortgage professional can "run the numbers" for you and assist you in making a decision," he advises.

Kate Newton of the Pennsylvania Housing Finance Agency reminds folks that there no longer is a sub-prime market. However, the PHFA offers "common-sense guidelines," free homebuyer education, and help with the downpayment and closing costs. Before taking out a home-equity loan or a cash-out refi, decide whether the project is likely to increase your home's value. And, remember, you will need some equity in the home and also "pretty good" credit to get this kind of financing. If you're having trouble making your monthly mortgage payment, check out these two sites: www.makinghomeaffordable.gov, and Fannie Mae's www.knowyouroptions.com.

Have a question or a comment about mortgage rates and housing issues? Call the experts live Thursday night at 8 at 1-800-729-7532, or send an email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it .