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Daily Real Estate News | September 24, 2007 | Expect Housing to Play Big in Presidential Race
The presidential election coming up in 2008 could put a new spin on the housing slump, especially since Federal Reserve Chairman Ben Bernanke says the slowdown is likely to get worse before it gets better.

At least 2 million adjustable-rate mortgages are expected to jump from a low teaser rate to a much higher rate this year and next, leaving home owners unable to refinance or sell their homes. That could have a significant impact on the presidential campaign, experts say. Housing is likely to be a big issue.

For now, President George W. Bush also is keeping housing at the top of his talking points. “I look forward to working with Congress to modernize the FHA loans so that people can refinance their homes."

Despite predictions of a continuing housing slump and a credit crunch that will throw the economy into recession, Bush says the country will weather the financial storm. "I'm optimistic about our economy," he says.

Those with other political stances view the situation differently. "Economic terrorism is what is going on in this country," said Bruce Marks, head of Neighborhood Assistance Corporation of America, a nonprofit group that promotes affordable homeownership. "Hard working people are not losing their jobs, but they are losing their homes," he says.

Source: Associated Press, Jeannine Aversa (09/20/07)