By Zoe Eisenberg
“These principles closely mirror the outline presented by the National Association of Realtors® to the administration in early 2011,” Thomas stated. “NAR believes these principles will contribute to the long-term stability of our nation’s housing market and provide consumers with access to affordable mortgage credit, even during economic downturns.
“As the leading advocate for homeowners, Realtors® remain steadfast in our efforts to preserve the government guarantee in any restructured secondary mortgage market to ensure the continued availability of safe, reliable mortgages such as 30-and 15-year fixed-rate loans, Thomas continued. “In a fully privatized market, many middle class Americans and individuals on fixed incomes would be unable to access affordable credit or be forced into adjustable-rate mortgages pinned to interest rate variations after a limited term. These homeowners, faced with potentially dramatic rate increases, could experience payment shocks that rattle their financial stability, which also impacts mortgage markets and the greater economy.”
Obama chose Phoenix for the location of his speech, as it was one of the markets hit the hardest in the real estate drought, and is currently on a rapid rebound. This made the city an ideal stopping point for the president to publicly map out his plan for keeping the housing market on the upswing and leading the nation further into economic recovery.
Since 2011, when Phoenix’ market crashed hard, the city has made large strides toward recovery. As of June 2013, according to a recent CoreLogic report, Arizona was one of the five states with the highest home price appreciation, landing at 16.2 percent. The Phoenix, Mesa and Glendale markets came in at a 17.1 percent increase for single family homes, including distressed property, and 14.7 percent excluding distressed. Home prices nationwide, including distressed sales, increased an encouraging 11.9 percent on a year-over-year basis in June 2013 compared to June 2012, according to the June CoreLogic Home Price Index (HPI®) report. This change represents the 16th consecutive monthly increase in home prices nationally.
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