Unless you've been hiding under a rock, then you've heard that Obama has been reelected for a second presidential term. Homeowners everywhere are wondering if and how his reelection will affect the housing market. Data shows the housing market is mending, but is still in need of repair. Those who've lost their homes to foreclosure have been seeking refuge in affordable Chandler AZ rentals causing a notable surge in rental rates and business for Chandler property management companies. Many underwater homeowners anxiously awaiting Obama's next course of action for his second term.
The president has implemented numerous programs to repair the damaged housing market in his first term. Some of them include: The Home Affordable Modification Program (HAMP), designed to help as many as 4 million homeowners at risk of foreclosure to reduce their monthly mortgage payment through modified loans. To date, the number of homeowners who received this incentive reaches just over 1 million. The Home Affordable Refinance Program (HARP), created to help underwater homeowners refinance to lower-rate loans. As a result, HARP refinances surged from 93,000 in 2011 to more than 180,000 in 2012's first quarter. The Obama Administration also launched its Second Lien Modification Program in 2011, offering incentives for lenders to reduce principle payments on second mortgages.
Housing data in recent months reports the market's slow road to recovery. Home prices have notably risen in the last three months in 120 out of 149 metropolitan markets, and according to Core Logic, housing prices in September increased 5% over a year ago. The home supply has significantly tightened, and lowered interest rates have begun increasing the demand for homes. Conversely, mortgage credit is still hugely unavailable to home buyers without immaculate credit, and there are still over 10 million underwater borrowers attempting to stay afloat by refinancing debt. The property managers in Chandler managing a surge of new tenants ponder how the president's next term will fuel the housing market.
Obama's second term agenda includes making refinancing available to borrowers with loans not backed by Fannie and Freddie Mae. If approved by congress, eligible borrowers stand to gain refinanced loans through the FHA. With the president's reelection on Tuesday, all eyes are now on Obama to repair the recovering, but still fragile housing market in his next four years.