New Jersey is a state in the Mid-Atlantic and Northeastern regions of the United States. It is bordered on the north by New York, on the east by the Atlantic Ocean, on the southwest by Delaware, and on the west by Pennsylvania. Parts of New Jersey lie within the sprawling metropolitan areas of New York and Philadelphia.

Inhabited by Native Americans for more than 2,800 years, the first European settlements in the area were established by the Swedes and Dutch in the early 1600s. The English later seized control of the region, naming it the Province of New Jersey, which was granted to Sir George Carteret and John Berkeley, 1st Baron Berkeley of Stratton as a colony. The name was taken from the largest of the English Channel Islands, Jersey. New Jersey was an important site during the American Revolutionary War; several decisive battles were fought there.

The winter quarters of the revolutionary army were established twice by George Washington in Morristown, which was called the military capital of revolution. Later, people who worked in factories in cities such as Paterson and Trenton helped to drive the Industrial Revolution in the nineteenth century. New Jersey’s position at the center of the Northeast Corridor, between Boston, New York City, Philadelphia, Baltimore and Washington, D.C., fueled its rapid growth through the suburban boom of the 1950s and beyond.

Most of Real Estate New Jersey has a humid subtropical climate, but the northwestern regions of the state have a humid continental climate with slightly cooler temperatures.

The summers are typically hot and humid with statewide average high temperatures of 82 – 88°F (28 – 31°C) and lows of 60 – 70°F (15 – 21°C). Temperatures exceeding 90°F (32°C) occur on average 18-25 days each summer, but temperatures below 0°F (-18°C) or above 100°F (38°C) are uncommon. The winters are cold with temperatures approaching the freezing point in most of the state, and will dip below freezing in the northwestern highlands.

Average yearly precipitation ranges from 43 to 51 inches (1,120 – 1,320 mm), fairly evenly distributed throughout the year. Average snowfall per winter season range from 10 – 15 inches (25 – 38 cm) in the south and near the seacoast, 15 – 30 inches (38 – 78 cm) in the northeast and central part of the state, to about 40 – 50 inches (1 – 1,27 m) in the northwestern highlands. On average, 25 to 30 thunderstorms occur every year, most during the summer.

During winter and early spring, New Jersey could experiences nor’easters, which cause blizzards and flooding in northeastern parts of the United States. New Jersey could also have drought for weeks. Hurricanes and tropical storms (such as Hurricane Floyd in 1999) are uncommon.

Around 180 million years ago, during the Jurassic Period, New Jersey bordered North Africa. The pressure of the collision between North America and Africa gave rise to the Appalachian Mountains. Around 18,000 years ago, the Ice Age resulted in glaciers that reached New Jersey. As the glaciers retreated, they left behind Lake Passaic, as well as many rivers, swamps, and gorges.[7]

New Jersey was originally settled by Native Americans, with the Lenni-Lenape being dominant at the time Europeans arrived. The Lenape were loosely organized groups that practiced small-scale agriculture (mainly based on corn) in order to increase their largely mobile hunter-gatherer society in the region surrounding the Delaware River, the lower Hudson River, and western Long Island Sound. The Lenape society was divided into matrilinear clans that were based upon common female ancestors. These clans were organized into three distinct phratries identified by their animal sign: Turtle, Turkey, and Wolf. They first encountered the Dutch in the early 1600s, and their primary relationship with the Europeans was through fur trade.

Colonial era
Main article: Colonial history of New Jersey

Since the state’s inception, New Jersey has been characterized by ethnic and religious diversity. New England Congregationalists settled alongside Scottish Presbyterians and Dutch Reformed migrants from New York. While the majority of residents lived in towns with individual landholdings of 100 acres (0.4 km2), a few rich proprietors owned vast estates. English Quakers and Anglicans owned large landholdings. New Jersey remained agrarian and rural throughout the colonial era, and commercial farming only developed sporadically. Some townships, though, like Burlington and Perth Amboy, emerged as important ports for shipping to New York and Philadelphia. The colony’s fertile lands and tolerant religious policy drew more settlers, and New Jersey boasted a population of 120,000 by 1775.

Much of New Jersey was claimed by the Dutch. The Dutch colony of New Netherland consisted of parts of modern New York (New Amsterdam) and New Jersey. Although the European principle of land ownership was not recognized by the Lenape, Dutch policy required formal purchase of all land settled upon, and the first such purchase was of Manhattan, by Peter Minuit.

The entire region became a territory of England in 1664, when an English fleet under the command of Colonel Richard Nicolls sailed into what is today New York Harbor and took over the colony, against extremely low resistance.

During the English Civil War the Channel Isle of Jersey remained loyal to the Crown and gave sanctuary to the King. It was from the Royal Square in St. Helier that Charles II of England was first proclaimed King in 1649, following the execution of his father, Charles I. The North American lands were divided by Charles II, who gave his brother, the Duke of York (later King James II) the region between New England and Maryland as a proprietary colony (as opposed to a royal colony). James then granted the land between the Hudson River and the Delaware River (the land that would become New Jersey) to two friends who had remained loyal through the English Civil War: Sir George Carteret and Lord Berkeley of Stratton. The area was named, the Province of New Jersey.

Settlement for the first 10 years of English rule was in the Hudson River region and came primarily from New England. On March 18, 1673, Berkeley sold his half of the colony to Quakers in England (with William Penn acting as trustee for a time), who settled the Delaware Valley region as a Quaker colony. New Jersey was governed very briefly as two distinct provinces, East and West Jersey, for 28 years between 1674 and 1702. In 1702, the two provinces were reunited under a royal, rather than a proprietary, governor.

Edward Hyde, Lord Cornbury became the first governor of the colony as a royal colony. Lord Cornbury was an ineffective and corrupt ruler, taking bribes and speculating on land, so in 1708 he was recalled to England. New Jersey was then ruled by the governors of New York, but this infuriated the settlers of New Jersey, who accused those governors of favoritism to New York. Judge Lewis Morris led the case for a separate governor, and was appointed governor by King George II in 1738.

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Lobbyists are pushing the Treasury Department to consider a plan to purchase mortgage-backed securities in the hopes of driving mortgage rates to as low as 4.5%, an industry source said.

Similar to an effort unveiled last week by the Federal Reserve, the proposal calls for Treasury to buy securities backed by 30-year fixed-rate mortgages from Fannie Mae and Freddie Mac. Details on the plan remain sketchy, but an announcement could come as early as next week, the source said.

The increased demand for mortgage-backed securities would prompt mortgage rates to drop. That, in turn, would enable homeowners to refinance into lower-cost loans and make it cheaper for potential homebuyers to get into the market.

Spokeswomen from Treasury and the Federal Housing Finance Agency, which oversees Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500), declined to comment.

Last week’s Fed move drove mortgage rates down to 5.5%, from 6.06% a week earlier. The Fed said on Nov. 26 that it would purchase up to $500 billion in mortgage-backed securities from Fannie, Freddie and Ginnie Mae, and that it would buy another $100 billion in direct debt issued by those firms.

Mortgage applications more than doubled as a result, the Mortgage Bankers Association said Wednesday. Much of the activity stemmed from homeowners looking to refinance.

Industry groups have been pressuring President-elect Barack Obama and lawmakers to lend a helping hand to the housing market. The National Association of Realtors, for instance, has called for Treasury to buy mortgage-backed securities.

Meanwhile, a coalition of industry groups have banded together under the “Fix Housing First” banner to call for measures including tax credits of up to $22,000 and the creation of a 30-year mortgage, carrying rates as low as 2.99%.

Experts see both pros and cons

Experts, however, had mixed views on how much a new Treasury initiative would help homeowners and the economy. Some felt lower rates would help stabilize the housing market by bringing in new buyers and would give those who refinance more money to spend.

“If it gets people buying homes and spending, it will help reverse the economy and get us out of this recession,” said Scott Talbot, senior vice president of the Financial Services Roundtable, which is pushing the measure.

While it takes time to entice new buyers into the market, low rates accelerate that process, said Greg McBride, senior financial analyst at Bankrate.com.

“It is clearly designed to bring buyers into the marketplace and soak the inventory of unsold homes,” he said.

But others questioned whether rates would remain low and, even if they did, only a narrow slice of credit-worthy borrowers would benefit.

Rates are already inching up, hitting 5.75% on Wednesday, said Keith Gumbinger, vice president of HSH Associates. Several government attempts to lower mortgage rates this year have failed to have a lasting effect.

Also, the proposal would do little to help troubled borrowers who have fallen behind on their payments, have no equity in their homes or have lost their jobs. With credit standards still high, these homeowners would not be able to refinance and take advantage of the lower rates, he said.

Finally, super-low rates could keep private investors out of the mortgage-backed securities market, forcing the government to remain the primary buyer of such investments, Gumbinger said. Rates have not fallen below 5.37% in more than 45 years.

“I can’t imagine there will be a significantly active marketplace of people who want to buy at these low rates,” he said.

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Does anyone really think this will help much if unemployment is up near 8%? How exactly are people going to continue paying thier new lower rate mortage if they don’t have a bloddy JOB!? Also I’ve been hearing that GoodO’L SUPER RICH and Ultimately ignorant Paulsen isn’t allowing people with exsisting mortages to refinance to this lower 4.5%. Only people whom are purchasing a new home can use it! That shit!

Reducing mortgage rates to a historically low 4.5% may entice some home buyers out of the shadows, but it won’t be enough to really spur housing sales, experts said.

Only a week after the Federal Reserve unveiled a $600 billion plan to reduce mortgage rates, the Treasury Department is considering adding to the effort to lower rates even more. Both moves are intended to get more buyers into the market in hopes of stabilizing home prices and reviving the economy.

While Treasury officials are keeping mum about the latest proposal, lobbyists said Thursday it is aimed at reducing rates to 4.5% only for people buying homes. Those looking to refinance would not qualify.

There’s no doubt, experts say, that the government needs to provide incentives to home buyers.

Until now, all efforts were focused on addressing the record number of mortgage delinquencies. This should remain the priority, experts say, but it should be coupled with increasing demand for homes.

Adjusting mortgage rates, however, will only go so far in getting prospective home buyers into the market, experts said. Potential buyers remain spooked by falling home prices and rising unemployment. And even those who want to buy cannot find loans with reasonable downpayments and terms.

“The problem is not interest rates,” said Kenneth Rosen, chair of the Fisher Center for Real Estate at University of California, Berkeley. “It’s the availability of credit.”

And, of course, there’s still the issue of stemming foreclosures. The Bush administration has been loathe to mandate widespread loan modifications. Instead, it is opting to chip away at the problem by adjusting loans held by Fannie Mae and Freddie Mac and by asking banks to expand their programs.

But even federal officials acknowledge the economy won’t recover until the tidal wave of foreclosures ends. Federal Reserve Chairman Ben Bernanke Thursday said the government must do more to help struggling homeowners, possibly by buying delinquent mortgages and refinancing them to more affordable terms.
Treasury plan in the works

Lobbyists are ratcheting up pressure on federal officials to do more to entice home buyers into the market. Various proposals have been floated, but lowering mortgage rates is among the more popular.

One of the more vocal industry groups, the National Association of Realtors, met with top Treasury officials last month to outline a plan to stabilize home prices through lower mortgage rates.

While details remain sketchy, its proposal calls for Treasury to subsidize rates so home buyers pay 4.5% for a 30-year fixed-rate mortgage. It would be similar to a homebuyer paying points — a percentage of a home’s value — in return for a lower rate, but the government would foot the bill.

The plan would cost $50 billion, said Lawrence Yun, the group’s chief economist.

Lowering rates to 4.5% — about a percentage point below today’s rate — would spur 500,000 home sales over the next year, he said. That would put a big dent in the supply of 4.6 million homes on the market. Right now, there is a 10-month supply of homes for sale, three to four months more than in normal conditions.

A 4.5% mortgage rate would prompt many people to buy, even if they fear home prices will continue to fall and the economy to weaken, he said. Rates have not fallen below 5.37% for 45 years.

A wave of purchases should stabilize home values, which, in turn, will help the economy to turn around.

Last week’s action by the Fed, which prompted a half-percentage point drop in rates, sent home buyers’ mortgage applications up 37.4%, according to the Mortgage Bankers Association.

“We need to do something to counter that pessimism,” Yun said. “Doing nothing will exacerbate the problem.”

Lowering rates is among several options the Treasury Department is considering. An announcement could come as early as next week.
More needs to be done

Experts, however, questioned whether buyers would take advantage of lower rates. They criticized government officials for taking a piecemeal approach — with narrow programs unveiled every week — rather than coming up with a comprehensive plan to stabilize the housing market.

“I don’t think they are thinking through what they are doing,” Rosen said.

What’s keeping many home buyers out of the market are stringent lending standards, not interest rates, experts said. As long as credit remains tight and banks require 20% downpayments, many buyers will remain on the sidelines.

Instead, banks should make mortgages available with a 5% or 10% downpayment, Rosen said. And while he doesn’t advocate a return to the “mirror standard” (when borrowers could get money if they simply could fog a mirror), banks should allow more people to qualify for fixed-rate mortgages if they show sufficient income.

The government could also provide more incentives to home buyers. Instituting a federal tax credit at closing to help cover costs would appeal to many purchasers, said James Gaines, research economist with the Real Estate Center at Texas A&M University. A $7,500 credit approved by Congress this summer — which is really a loan since it must be paid back — isn’t working.

“It hasn’t done any good,” Gaines said. “Make it a real credit for home purchases.”

Another option is to provide incentives for investors to buy properties and turn them into rentals, he said. This could be done with various tax incentives, such as eliminating capital gains tax on homes owned for more than five years.

Other experts said a mortgage-rate reduction could work, but only if it were done on a temporary basis. That would prompt people to take advantage of the lower rates while they last, said Edward Leamer, director of the UCLA Anderson Forecast, a quarterly economic review.

As the economy continues to weaken, however, some economists say the answer to the housing crisis lies in stabilizing the job market. As more people lose their incomes, more fall behind in their mortgages and lose their homes. This trend will accelerate the number of foreclosures and keep prices in a downward spiral.

If people fear for their jobs, or even worse, have no job, they will not make big-ticket purchases like a home, said Christian Menegatti, lead analyst for economic research firm RGE Monitor. That’s why the government should consider an economic stimulus package that will help keep both home values and employment from declining.

“Potential homebuyers may not be in the condition to buy a home no matter what because of a job loss or a drop in income,” he said.

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