With President Obama fresh into the new administration, many are wondering what will be in store for housing.
In his inaugural address, Obama noted, "Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some, but also our collective failure to make hard choices and prepare the nation for a new age. Homes have been lost; jobs shed; businesses shuttered." He gave also a motivating line that "starting today, we must pick ourselves up, dust ourselves off, and begin again the work of remaking America."
This reworking of our systems will most definitely include the real estate and mortgage sectors.
Lawrence Yun, NAR chief economist, has reported this week that restoring higher mortgage loan limits is critical to this part of the market. "Buyers in higher price ranges are at a severe disadvantage because they have to pay higher interest rates," he said. "Lower loan limits are having a pronounced impact on trade-up activity at the upper end of the market, which depends more on large downpayments to keep mortgage amounts below the maximums for conventional financing."
NAHB Chairman-elect Joe Robson reports, "The only way to stabilize the housing market and restore consumer confidence is to put a floor under declining home values. In conjunction with foreclosure mitigation efforts, Congress must pass temporary and targeted incentives to encourage Americans to buy homes again. This will help to stabilize home prices, prevent future foreclosures, restore consumer confidence and start creating jobs."
Written by Carla L. Davis for www.RealtyTimes.com Copyright © 2009 Realty Times All Rights Reserved.