Festivities surrounding the presidential inauguration have come and gone, and now that President Barack Obama has been officially sworn in for a second term, he can get back to business.
Many people argue that it’s very difficult for a president to make a big difference in just one term. Some people claim President Obama could have done more during his first four years, while others say he performed admirably on everything from the economy to foreign policy. People can argue back and forth about these issues all day, but there is one thing for sure, the housing market and mortgage industry are in much better places now than when President Obama first assumed office.
The statistics don’t lie
For example, last year, there were an estimated 1.83 million foreclosures across the country, according to data from RealtyTrac. Although this may seem like a high level of activity, it was a slight improvement from 2011’s 1.88 million foreclosures and a notable dropfrom 2008 when more than 2.8 million foreclosures took place.
Meanwhile, the median price of new homes when President Obama first assumed office was $208,600, according to the U.S. Census Bureau. By the end of 2011, this increased to $212,300.
Rising property values is positive for many reasons. For one, in the wake of the housing market collapse, more than 14 million homeowners were left upside down on their mortgages. This meant they owed more on their loans than their properties were worth. However, as prices continue to trend upward, this could help more households escape from under the thumb of negative equity.
A tougher stance on lenders
Another milestone of President Obama’s first four years is the initiatives his administration created to take on risky mortgage practices as well as provide troubled borrowers with alternatives to foreclosure.
Part of this came in the form of the Consumer Financial Protection Bureau. Many experts saidif Mitt Romney had won the most recent presidential election, the CFPB would be dissolved. But because President Obama won a second term, the agency is expected to be around for some time.
The CFPB recently gained notoriety for implementing the ability-to-repay rule. This initiative requires lenders to do a thorough assessment of a potential borrower’s finances prior to giving them a loan. Although this may seem like a given, failure to do this was a main factor that contributed to the housing market collapse.
Getting your personal finances under control is the first step to qualifying for a home loan. Freedom Mortgage offers some of the latest advice on comprehending a fluid housing market from improving your home value to tips on comparing mortgage loan rates.
Latest posts by ChuckM (see all)
- A Millennial Guide to Buying Your First Home - January 4, 2017
- Getting to the Truth: Top Mortgage Misconceptions and Facts - December 28, 2016
- What Are the Most Common Reasons Why People Get Turned Down for Loans? - December 14, 2016