A recent announcement from Shaun Donovan, the secretary of the U.S. Department of Housing and Urban Development lent support to president Barack Obama's Home Affordable Refinance Program and new employment legislation, according to the Charlotte Observer.
With the majority of the United States struggling due to the economy, the new legislation is hopeful to improve the situation, overall. HARP is aimed to cut down the number of homeowners with underwater loans across the country, especially in the hardest hit states, such as Florida, Georgia, Nevada and Arizona, the news source reported. However, not all experts are convinced that the plans will save the market on their own.
"The plan does little to speed up the housing recovery, however," Mark Vitner, senior economist for Wells Fargo, told the news source. "Unfortunately, the housing market will not recover in a major way until we clear the backlog of foreclosures, restructure mortgage finance, and see a consistent improvement in job and income growth."
If HARP can raise home prices, the housing market could be on its way back, especially if the jobs bill helps out as well. Many experts have pointed to the lack of employment as a major reason why the housing market has not been able to recover, so far, despite affordable conditions.