Bouncing back

Recent data suggest that the Valley economy - the housing market, at least - is on the rebound after a nationwide drop in 2007. Spending and housing purchases are up, suggesting that people have both the money and the confidence to make such purchases.

As was noted in a recent article, some 230 home sales were recorded in Brownsville during the first three months of this year. McAllen registered 550 home sales, and analysts say the real estate market continues to move back toward normalcy.

This is a welcome sign, and testament to the Valley's continued economic and population growth.

Still, we should remember that hundreds of Valley residents did lose their homes in the past few years, just like elsewhere. Many of them fell victim to the subprime housing crisis that swept the country.

The first thing to note is that while the big bad banks received the lion's share of the blame, they were not the only cause of the housing market implosion. Rising interest rates were only part of the reason mortgage payments rose beyond the reach of many people. The steady creep of taxation was just as much at fault, even though government officials will never accept responsibility.

It was these officials who blamed subprime lenders; sadly, a servile media simply looked where the officials pointed.

To be sure, banks are responsible for making too many high-risk loans than they should. Even then, however, they might have done so in the confidence that they'd be bailed out if anything went wrong. After all, that's been the norm - it happened in the savings and loan industry, airline and automotive markets, to name a few.

It's no secret, however, that many residents saw their property tax bills rise drastically. In Texas, when the Legislature responded to rapid tax rate increases by voting to limit the amount of increase counties and cities could impose each year, many counties responded with drastic appraisal increases.

Increases in homeowners' insurance add yet another factor affecting mortgage payments.

Homeowners, and those who plan to be soon, should then recognize the many factors that can raise home payments. They should take in all factors, and leave plenty of room between their initial payments and the amount they can afford to pay, so they can handle increases in any or even all parts of their mortgage bill.

Bankers need to be more responsible, and not assume that Congress will always bail them out if they make high-risk loans.

Most importantly, people should recognize that the actions of lawmakers everywhere - from Congress to their state capitals and city commissions - can affect interest, tax and insurance rates. Therefore, voters should demand that officials be responsible in their actions and policies, and replace those officials who don't. As we have seen, allowing the wrong people to take office could very well turn the dream of homeownership into a financial nightmare.