The CALIFORNIA ASSOCIATION OF REALTORS® reports that sales decreased 25 percent in May and the median price of a home in California was at $591,180, up 4.8 percent from a year ago.

Closed escrow sales of existing, single-family detached homes in California totaled 366,370 in May at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide.  Statewide home resale activity decreased 25 percent from the 488,260 sales pace recorded in May 2006.

The NATIONAL ASSOCIATION OF REALTORS® has put out a brochure to help consumers learn how to avoid foreclosure and to keep their home.  The housing boom led to a record homeownership rate of nearly 70 percent, but some homeowners now face problems making their mortgage payments and can not refinance their loans. Over the last few years, lenders invented new types of mortgages to help families buy their first homes and refinance their existing mortgages.  Many of these mortgages helped families without cash for a down payment, or with less-than-perfect credit, qualify for loans known as “subprime” loans.

Subprime loans have a higher interest rate and higher costs, such as prepayment penalties.  A very popular, widely available mortgage product is the hybrid adjustable rate mortgage (ARM).  Hybrid ARMs have an initial period with a lower interest rate {“teaser rate”} followed by significant increases over the remainder of the loan.  The hefty payment increase is often called “payment shock” because the borrower is surprised by the size of the increase and can not afford the new payment.

If you are having trouble paying your mortgage for any reason, or expect problems, you should work with your REALTOR® or your lender to find a solution now.  If you fall behind and do not take action, the lender will foreclose on your home.  If that happens, you may lose your home and all of the money you have already invested in it.  The sooner you act, the better the chances you will avoid foreclosure.

The Center for Responsible Lending estimates that 2.2 million American households with subprime mortgages have lost or will lose their home as monthly payments rise on high-risk mortgages.  These families stand to lose as much as $164 billion of equity in their homes.

An education partner of N.A.R. is NeighborWorks® -- Center for Foreclosure Solutions.  HOPE for Homeowners provides homeowners assistance 24 hours a day, 7 days a week, at 1-888-995-4673.

Other developments in Congress is the Federal Housing Finance Reform Act of 2007, HR 1427.  This measure strengthens Congressional oversight of Freddie Mac and Fannie Mae and restructures the conforming loan limits in high cost areas.  The bill passed the House of Representatives and awaits action in the Senate Committee on Banking, Housing, and Urban Affairs.

The Expanding American Homeownership Act of 2007, HR 1852, reforms the FHA Program by raising loan limits, extending mortgage terms and revising down-payment criteria for mortgage insurance, including mortgage insurance premiums for zero and lower-down-payment borrowers.  The legislation is awaiting floor action in the House of Representatives.

Census Bureau data says that despite rising gas prices, 87.7 percent of commuters say they are driving to work, with 77 percent riding alone.  Carpooling is the second most popular commuting option. People who car pool make up about 10.7 percent of people who car pool to work and about three-fourths of people who car pool rides with just one other person.