If President Barack Obama is granted his wish for the housing industry that he expressed during his State of the Union address earlier this week, many borrowers applying for construction home loans in Utah may be better able to fund their purchases.
One section of the president's speech focused on the lagging housing market and how the U.S. government could stimulate property ownership for prospective Utah first-time homebuyers and generate more refinancing options for current homeowners.
Part of Obama's refinancing plan calls on the government to penalize large financial institutions that do not extending refinancing options to homeowners whose mortgages are not backed by Fannie Mae and Freddie Mac. The president's proposal for rousing the home construction industry was not as detailed, but Obama was earnest in explaining the basic tenets of the steps he implored Congress to take.
"Take the money we're no longer spending at war, use half of it to pay down our debt, and use the rest to do some nation-building right here at home," Obama implored to Congress. "There's never been a better time to build, especially since the construction industry was one of the hardest hit when the housing bubble burst."
Obama's speech follows a report from the National Association of Homebuilders (NAHB) last week that found confidence among homebuilders in January had risen for the fourth consecutive month. The confidence index of 25 represents the highest level observed by NAHB since June 2007. Based on this report, NAHB officials are optimistic that housing starts will continue to bounce back from record-low 2011 levels.
Individuals who are contemplating buying a home in Utah may be able to do so more quickly this year if Obama's proposals are enacted. Homebuyers should be encouraged by low property values, as constructions loans may be easier to receive and cheaper to fund.
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