Chicago, IL (PRWEB) July 05, 2014
The Obama administration has decided to expand their Making Home Affordable program in the 5th anniversary of the program. This program was launched in 2009 and since then aims to improve the housing marked by helping the homeowners.
Peoples Home Equity thinks this decision was made at an appropriate time when doubts regarding economic growth have rekindled based on the most recent 1st quarter GDP growth number of -2.9%. The Making Home Affordable program will remain in place until December 2016. In this way, mortgage rates will improve and foreclosures will be avoided. Until now the Making Home Affordable program has been very beneficial considering that many homeowner monthly payments have been reduced by $540 per month and around 1.3 million homeowners have improved their mortgage rates. While many Americans have been afraid to buy a new home, or are renting homes, or cannot access mortgage credit, the life expansion of this program will create more home builder friendly environment. One of the points of this program in the future will be to fund the construction of more affordable homes in order to attract consumers.
Peoples Home Equity believes that this program will help overcome last remnants of the housing crisis and will bring relief to families at risk of foreclosure. With the extension of this plan, The Federal Financing Bank will most likely be able to provide $500 million to $1 billion per year to fund rental housing projects.
By avoiding foreclosure, funding construction, and attracting more private capital to the housing market, the extension of this program represents a big hope in the continuation of the housing recovery and in helping the American homeowners.