A Housing Market Update
By Angela Baca
Photo: © Hongqi Zhang - Dreamstime
 Because today's consumers have learned serious lessons about the housing market from the recent recession, they are often attuned to the latest ups and downs of the market. In the first few months following the recession, consumers are still uncertain whether it is wise to make a big financial change like buying or selling a home. A big concern is the need to secure a low monthly house payment; potential homeowners want affordable housing in future economic downturns.
Before making a decision to change your housing situation, get the facts on the mortgage market and the local housing industry. For example, you might wonder how Wall Street has refined its mortgage lending practices since the meltdown of 2007. Look to updates from the Fed and the U.S. Department of Housing and Urban Development (HUD) for trusted government information. You can also read financial news and economic discussions published by the nation's leading economists. A different perspective is given by housing experts in the real estate and building sectors. |
Making Mortgages More Affordable
The Obama Make Home Affordable Program (MHAP) offers an informative website for troubled homeowners at MakingHomeAffordable.gov. In October 2009, the Obama administration posted a reassuring report showing that MHAP reached an important target of 500,000 set for November 1. Over a month ahead of schedule, the Treasury and HUD noted that well over 500,000 loan modifications were currently underway to provide relief to home loan borrowers. In fact, the number through September 30, 2009, was 757,955 trial plans (for home loan modification) offered to borrowers.
American homeowners want a lower payment for homeownership. Loan modification is one option. Other prospective homeowners who have been building stronger credit during the recession are poised to become new homeowners this year and next year. They understand that 2009-2010 home values are a great bargain and that a full market recovery will mean their home value will exceed their mortgage debt, creating home equity.
New Home Building
The building side of the housing industry is also showing some positive indicators. On September 28, 2009, the National Association of Home Builders (NAHB) reported a good number (0.7 percent growth in new home starts in August 2009). This was only a slight disappointment compared to stronger percentages of growth in April, May, June, and July.
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