June is Homeownership Month

JUNE IS HOMEOWNERSHIP MONTH
June 10 , 2005

For the fourth year in a row, June has been designated "National Homeownership Month" by the White House. The purpose is to spotlight the pride and value that comes with owning a home, as well as to help more families become first time homeowners. As this year's Presidential proclamation declaring June National Homeownership Month states, "The American Dream starts with owning a home."

More Americans own their own homes today than at any time in history. The majority of minority family households are now resident-owned, too. The minority homeownership rate stood at a record 51.6% in the first quarter of 2005.

Mortgage rates that remain at historically low levels have been among the chief catalysts for the boom in refinancing and strong home sales. According to National Association of Realtors calculations, existing home sales for the month of April rose to a new monthly high: 4.5% over March and 5% over April 2004. The Census Bureau reported that housing starts in April came in well above expectations.

The U.S. economy has now grown for 14 consecutive quarters and created over 3.5 million jobs during the past 24 months and the housing industry is one of the leading reasons. Consumers pump billions of dollars back into the economy through housing-related purchases. Housing accounts for about 15 percent of the nation's total GDP and creates millions of jobs.

Homeownership benefits the community and American families. When families own their homes, they become "stakeholders" in the community. They tend to become active in charities, churches, and schools. Owning a home is also one of the best opportunities to create wealth by building equity. It is with good reason that owning a home is referred to as the "American Dream."

For that reason, the name, "the American Dream Down Payment Act," which I supported, was given to a new law, designed to help families with their down payments and closing costs for their first homes. The greatest obstacle between many families and home ownership is the barrier of saving for the down payment. Since the American Dream Down Payment Act was signed into law, more than 6,500 have already received assistance overcoming those hurdles and qualified as first time home buyers.

To make first-time home buying even more affordable, I also co-sponsored the Zero Down Payment Act in the 108 th Congress. The Zero Down Payment Act would allow families to qualify for FHA loans without having to pay cash at closing.

The FHA is one of the federal government's great success stories. It is the largest insurer of mortgages in the world. More than half of the 2.3 million minority families who have bought homes in the two years since President Bush challenged the nation to create new opportunities for minority homeownership, bought their homes through the FHA.

The FHA has new hybrid adjustable rate mortgages. The programs have been available for just over a year and have been successful. The FHA offers adjust-rate mortgages (ARMS) that require a low down-payment and a fixed rate for a set period at the beginning of the loan. These hybrid ARMS are expanding homeownership opportunities by offering loans that are tailored to the financial conditions of the families buying the homes.

Real estate and refinancing have been strong sectors of the economy during the past several years. Homes have increased in value even as the stock market has fluctuated. Of course, past performance is no guarantee of the future; but continued record homeownership is evidence of a healthy economy. The capital gains that homeownership has produced for many American families are the source of many "American Dreams."

First time buyers who want to participate in the American Dream can seek out information and federal government resources through the Department of Housing and Urban Development (HUD). If you are a renter, visit HUD's website at www.hud.gov and consider participating in the "American Dream" of home ownership

http://www.house.gov/miketurner/news/press.rel/6.10.05.shtml