After Obama’s State of The Union Address what can we expect to see in the housing market in 2010?
A new commitment to fiscal restraint, and the certainty that change is impeding, Obama assured us, that Americans are resilient “ while affirming, “I never suggested change would be easy.” So, “It’s time for something new,” he said… Something that will bring an assurance to American’s about the future. However, just what does that mean?
“The steps we took last year to shore up the housing market have allowed millions of Americans to take out new loans and save an average of $1500 on mortgage payments. This year we will step up refinancing so that homeowners can move into more affordable mortgages.”
With so much talk about “recovery, “how is this going to take place? Just what does Obama mean by “stepping up refinancing so that homeowners can move into “affordable mortgages?”
Obama made it very clear that jobs, jobs, jobs are a central focus for 2010; however, in two months the Treasury Department’s $1.25 trillion program to buy agency mortgage-backed securities will end. This program did drive down mortgage rates and open up the market for some real estate buyers, but how does Obama plan on bringing recovery to the housing market?
While very little was mentioned in Obama’s State of the Union speech about the real estate market, perhaps the President’s focus for creating new jobs will bring a new sense of relief to this troubled housing market, since the boom of foreclosures has been more largely the result of unemployment. While the Administration’s modification and refinance programs have made a small difference for those trying to keep their homes in this pressed economy, these programs will not work if a borrower has no job!
Obviously Obama believes jobs will bring about change, and let’s hope so! If that’s his point of view, great, but he better not use my money to put expensive Band-Aids on cuts that might not heal.
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