Following the unfortunate circumstance thousands of homeowners have found themselves in, we want to update our readers on the litigation efforts.  Due to significant new construction demands in the U.S. between 2004 and 2007 which were the result of a booming housing market and devastation in hurricane impacted areas, the U.S. imported millions of tons of drywall from various Chinese suppliers.  The method by which this drywall supply was generated resulted in the emission of hydrogen sulfide.  Hydrogen sulfide is a flammable gas that has a strong rotten egg smell.  Homeowners have been complaining about fumes, appliance interference and even metal corrosion in association with this drywall product.  As the enormity of the problem emerged, lawsuits were filed.  The first, against Chinese state owned Taishan Gypsum Company, Ltd, has been determined in favor of affected homeowners. The judgment demands that Taishan recondition the homes through the removal and replacement of flooring, drywall, copper plumbing (corrosion issues due to drywall), A/C, wiring (more corrosion issues) and insulation.  Relocation during rehab must also be provided.  Not addressed are health related damages which will be an issue for a later date....

Enforcement is another matter since Taishan did not appear or respond to the suit.  There are additional lawsuits against this company and a slew of cases pending against other Chinese manufacturers; the Taishan outcome will most likely serve as a guide for the thousands of pending cases.  These cases involved major homebuilders, suppliers, installers and even insurance companies facing claims.

Freddie Mac's weekly survey of mortgage lenders shows that rates are inching back up.  As we know from following the weekly survey, rates have been bouncing around for quite some time averaging around 5%. Bond rates are starting to show a little life and in turn, mortgage rates are following.   Last week's upward inch left the media outlets and bloggers yelling that these are the highest rates seen in eight months.  The weekly rate for a thirty (30) year fixed rate mortgage hit 5.21% with about 0.6 point down to obtain the rate.  The fifteen year fixed mortgage rate also went up to 4.52% with 0.6 point down.  The regional rates were about the same but required 0.8 point down to get the rate.

Check back next week for more information on the real estate market.