Pirate's Cove

The notion is laudable, but, the actual substance shows it was crafted by people who have little idea how the housing economy works. By people who’ve barely ever worked in the private sector, and certainly not in anything related. Who have no idea of the implications, they just want to buy votes

I'm grateful that @POTUS is taking this important step to lower housing costs for families in NC & beyond.

As the President mentioned during the State of the Union, it's critical that everyone has access to a safe, affordable place to live.https://t.co/4OrJ4QTcI0

— Congresswoman Deborah Ross (@RepDeborahRoss) March 11, 2024

If he was so concerned, he’d stop letting so many illegal aliens into the country. Let’s take a look at a few of these ideas from people who’ve never worried about their own housing costs

President Biden believes housing costs are too high, and significant investments are needed to address the large shortage of affordable homes inherited from his predecessor and that has been growing for more than a decade. During his State of the Union Address, President Biden will call on Congressional Republicans to end years of inaction and pass legislation to lower costs by providing a $10,000 tax credit for first-time homebuyers and people who sell their starter homes; build and renovate more than 2 million homes; and lower rental costs.  President Biden also announced new steps to lower homebuying and refinancing closing costs and crack down on corporate actions that rip off renters.

Got that? It’s Trump’s fault. Does anyone remember complaints about high housing costs and shortages while Trump was president? Or Obama? It wasn’t on Trump’s watch when housing prices skyrocketed about 2.5 times the real value

Mortgage Relief Credit. President Biden is calling on Congress to pass a mortgage relief credit that would provide middle-class first-time homebuyers with an annual tax credit of $5,000 a year for two years. This is the equivalent of reducing the mortgage rate by more than 1.5 percentage points for two years on the median home, and will help more than 3.5 million middle-class families purchase their first home over the next two years. The President’s plan also calls for a new credit to unlock inventory of affordable starter homes, while helping middle-class families move up the housing ladder and empty nesters right size. Many homeowners have lower rates on their mortgages than current rates. This “lock-in” effect makes homeowners more reluctant to sell and give up that low rate, even in circumstances where their current homes no longer fit their household needs. The President is calling on Congress to provide a one-year tax credit of up to $10,000 to middle-class families who sell their starter home, defined as homes below the area median home price in the county, to another owner-occupant. This proposal is estimated to help nearly 3 million families.

And you know what that can cause? Keeping home prices higher. Where’s the money coming from? Also, it’s still a tax credit, people will pay the money upfront.

Down Payment Assistance for First-Generation Homeowners. The President continues to call on Congress to provide up to $25,000 in down payment assistance to first-generation homebuyers whose families haven’t benefited from the generational wealth building associated with homeownership. This proposal is estimated to help 400,000 families purchase their first home.

That will also keep prices higher. But, hey, if you already have a house it’s “generational wealth.” What about a guy who owns two homes, one a fancy one at the beach?

Lowering Closing Costs for Refinancing. The Federal Housing Finance Agency has approved policies and pilots to reduce closing costs for homeowners, including a pilot to waive the requirement for lender’s title insurance on certain refinances. This would save thousands of homeowners up to $1500, and an average of $750, and the lower upfront fees will unlock substantial savings for homeowners as mortgage rates continue to fall and more homeowners are able to refinance. According to independent analysis, across the market title insurance typically pays out only 3% to 5% of premiums in claims to consumers, compared to more than 70% in other types of insurance. Homeowners can still purchase their own title insurance policies if they choose to do so.

That money has to come from somewhere, and sounds rather Socialist in dictating what the private economy does. Brandon wants the same thing for initial mortgages, as well.

He has a tax credit to build more low income rental units. Why would builders do that? There’s not that much return on investment, and they often become dangerous. I know of several which started that way and became regular rentals, and that was during the late Obama era. He wants to force banks to double their contributions to the Affordable Housing Program.

He goes on to yammer about price gouging for rentals and junk fees. So, more Big Government intervention and tyranny. And vote buying. It’s no wonder this policy is being ignored by the news, especially the economic news, because it would invent new price increases. Throwing money at the problem is a great way to heat the housing industry. Much like his $7.3 trillion budget.