Is Homeownership Important?
Scott P. Rogers
Buy A Home! It is the American Dream! But why, you might ask? Well, here's a bit of the historical political context for the American Dream, per the National Association of Realtors:
But despite the fact that America has prioritized homeownership for decades, and most Americans strive to own a home, it seems that structural changes might be on their way that seem likely to decrease the ability of Americans to fulfill the American Dream.
As reported by WHSV earlier this week, "The Obama administration released a report to Congress last week outlining what it wants to do to reform the housing finance market. Some of the proposals include larger down payments, increased fees and possibly ending 30-year mortgages."
As summaryized in the Wall Street Journal, "The Obama administration outlined on Friday its plans to begin shrinking the government's broad support of the nation's crippled mortgage market, a process that officials said could take several years and would include phasing out Fannie Mae and Freddie Mac."
What would the results be? Again, confirming my hypothesis:
This entire train of thought leaves me with more questions than answers, but it seems that we may continue to see some significant transitions in the housing market in the next year years.
Stay tuned!
- President Franklin Delano Roosevelt once said that a nation of homeowners is unconquerable.
- Margaret Thatcher, with a mantra that homeowners become responsible citizens, privatized and moved 1.7 million families from public housing into private ownership.
- President Bill Clinton has stated his belief that homeownership and decent housing are an essential part of the American Dream and wanted to make the dream of homeownership a reality for all Americans.
- President George W. Bush has said ownership has the power to transform people.
But despite the fact that America has prioritized homeownership for decades, and most Americans strive to own a home, it seems that structural changes might be on their way that seem likely to decrease the ability of Americans to fulfill the American Dream.
As reported by WHSV earlier this week, "The Obama administration released a report to Congress last week outlining what it wants to do to reform the housing finance market. Some of the proposals include larger down payments, increased fees and possibly ending 30-year mortgages."
As summaryized in the Wall Street Journal, "The Obama administration outlined on Friday its plans to begin shrinking the government's broad support of the nation's crippled mortgage market, a process that officials said could take several years and would include phasing out Fannie Mae and Freddie Mac."
What would the results be? Again, confirming my hypothesis:
"The cost of mortgages is probably going to go up, and homeownership is probably going to go down," said Daniel Mudd, the former chief executive of Fannie Mae who is now CEO of Fortress Investment Group. "Both of those things arguably could be a good thing."
This entire train of thought leaves me with more questions than answers, but it seems that we may continue to see some significant transitions in the housing market in the next year years.
Stay tuned!
