As the presidential election approaches, one thing is clearly on the next president’s agenda: affordable housing. While numbers compiled from various sources indicate recovery for the housing market, many things remain to be repaired. It will be up to the next president to create and implement solutions that keep the housing market headed in the right direction.

The Impact of the Economy

The president’s economic plan will weigh heavy on the housing market. Employment rates need to improve so that more people can afford new homes, or keep the one they have. The policies that the president enacts will have a direct impact on the continued recovery of the housing market.

These policies will also affect the mortgage rates, and whether people can afford to sell their homes as well as buy them.

What Are Their Plans?

While neither candidate has outlined a complete plan dealing with housing, both have hinted at some ideas they have. President Obama plans to build on the policies already in place to provide relief to current homeowners who are trying to keep their homes. He plans to continue to implement new rules to govern housing and make it easier for people to refinance their homes.

Romney plans to do away with current legislation and create more streamlined policies to make it easier for small finance institutions to get back into the mortgage market.

What to Watch For

The government now backs almost all of the mortgages that have originated since they took over Fannie Mae and Freddie Mac. The next president will have to decide how to continue backing mortgages. This will have a major impact on mortgage rates and the price of homes.

President Obama plans to create a new government system to replace Fannie and Freddie, but hasn’t given details on what it will be. Romney wants to see private investors replace the government for backing home loans.

One area that both candidates agree on is what to do with the foreclosed homes the banks currently own. They both support selling these foreclosed homes to be used as rental properties. They say that with fewer foreclosures on the market, home prices will increase.

Another area that will have to be dealt with is the subject of down payments. Tighter restrictions and regulations have been imposed to protect lending institutions and buyers, but it also limits the number of people who can buy a home. The question everyone will be asking is if these regulations will be loosened to allow more people to get a mortgage.

Regardless of who wins the next election, they will have to deal with the issue of mortgages and the housing market. There will be many decisions to be made that will affect anyone who wants to buy or sell their home. In the end, what the next president does for the economy will either drive the housing market further towards recovery, or further away from it.

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