FLASH: Homeowners enjoy a $9.7-T gain in equity in last 10 years, up from $6.1-T in Q-1 of Y 2009..
“We are lifting up forgotten communities, creating exciting new opportunities, and helping every American find their path to the American Dream, the Dream of a great job, a safe home, and a better life for their children.”–President Donald J. Trump
REFORMING THE HOUSING FINANCE SYSTEM
The United States housing finance system is in need of reform to help Americans who want to buy a home.
- This Spring, President Trump is signed a Presidential action memo initiating overdue reform of the housing finance system.
- During the financial crisis, Fannie Mae and Freddie Mac suffered significant losses and were bailed out by the Federal Government with billions of taxpayer dollars.
- Fannie and Freddie have been in conservatorship since September 2008.
- In the decade since the financial crisis, there has been No comprehensive reform of the housing finance system despite the need for it, leaving taxpayers exposed to future bailouts.
- Fannie and Freddie have grown in size and scope and face No competition from the private sector.
- The Department of Housing and Urban Development’s (HUD) housing programs are exposed to high levels of risk and rely on outdated business processes and systems.
PROMOTING COMPETITION AND PROTECTING TAXPAYERS
The Trump Administration is working to promote competition in the housing finance market and protect taxpayer dollars.
- Our President is directing relevant agencies to develop a reform plan for the housing finance system.
- These reforms will aim to do the following:
- End the conservatorship of Fannie and Freddie and improve regulatory oversight over them.
- Promote competition in the housing finance market and create a system that encourages sustainable home-ownership and protects taxpayers against bailouts.
- Our President has directed the Secretary of the Treasury and the Secretary of Housing and Urban Development to craft administrative and legislative options for housing finance reform.
- The US Treasury is preparing a reform plan for Fannie and Freddie.
- HUD is preparing a reform plan for the housing finance agencies it oversees.
- The Presidential action memo calls for reform plans to be submitted to the President for approval as soon as practicable, they are all in the works for presentation this Fall
- The Administration hopes work with Congress to achieve comprehensive reform that improves American’s housing finance system.
HELPING PEOPLE ACHIEVE OWNING A HOME: “THE AMERICAN DREAM”
These reforms will help more Americans fulfill their goal of buying a home.
- President Trump is working to improve Americans’ access to sustainable home mortgages.
- The Presidential action memo aims to preserve the 30-year fixed-rate mortgage.
- The Administration is committed to enabling Americans to access Federal housing programs that help finance the purchase of their 1st home.
- Sustainable American home-ownership is the Key to success for comprehensive reforms to Government housing programs.
Already, we are seeing The Trump Effect in America’s housing market
US new home sales rose in June, but are still below sales marked earlier this year, suggesting low mortgage rates and a healthy job market may be encouraging more purchases.
The Commerce Department said last Wednesday that new home sales increased 7% to a seasonally adjusted annual rate of 646,000. That is up from 604,000 in May but below April’s figure of 658,000.
Through 1-H of the year, purchases of new homes have increased 2.2% compared with the same frame last year.
The increase, along with a drop in existing home sales in June, suggests the housing market is still struggling to accelerate after slowing sharply last year. Rising prices for existing homes are outpacing wage growth and leaving many would-be buyers on the sidelines.
Sales of new homes soared more than 50% in the West, partially recovering after a sharp drop in May. They dove 26.3% in the Midwest, where they have fallen 18% compared with a year ago. Sales slipped 4.2% in the Northeast in June and ticked up by 0.3% in the South.
Prices for new homes have been more restrained than for existing 1’s. The median price for a new home was $310,400 in June, little changed from a year earlier. Median existing home prices rose 4.3% in June from a year ago, faster than the growth in average hourly pay.
Making and Keeping America Great!