Debt Consolidation

  The steep decline in home prices coupled with an increasing amount of foreclosures and shorts sales have brought the United States economy to its knees.  One of the largest economic problems that President Obama set out to solve after being elect president with the housing crisis. Some analysts are predicting that the current housing crisis could cause the worse recession since the great depression; some well-known pundits think it is inevitable.

  The Making Home Affordable plan was designed to allow individuals to refinance at lower rates as well as gain access to historically low mortgage rates.There is no doubt that is it going to take some time for home prices to find a bottom before we start to see a stabilization and steady appreciate again. Well, mortgage rates are going to continue to reach historic lows because the Federal Government is printing money to force mortgage rates to stay under 5%.  With rates under 5% and Americans having the opporunity to lock in at historically low rates, wouldn’t you think that home prices would have bottomed in March when these two events took place.Most experts felt that the bottom would come in March of 2009 when Obama released the Making Home Affordable plan and Ben Bernanke announced that the Federal Reserve was going to buy back over $1 trillion in mortgage backed securities. 

  The Case-Shiller March data came in very similar to the previous six months: home prices continued to fall.  There were only TWO cities in the 20 city index that saw an increase in home prices from the month of February to March.  Sadly, those two cities, Charlotte and Denver, were only up 0.3% and 0.1% respectively. With the spike in applications, it is very likely that lenders were not able to complete all the applications by the end of the month.  We can hope this is the case as this might be the last move before checkmate. I am sure that the current administration has many more plans up their sleeves but I am not sure what can solve the current housing issue. 

    When we see that some of the housing supply comes off the market and there is a growing demand for homes, we will see a bottom in home prices.  My question to you is, has Obama helped the housing market at all?