How Housing Could Lead the Economy Out of Recession

Great article on how the housing market is directly tied to the rebound of the US economy. We in the industry help lead the charge for positive growth; what we do every day helps turn the economy around. Also, at the end there is a blurb about how popular the FHA loan product is these days. FHA will have a record year in 2009. This has become the MOST important loan product out in the market place. Without this program, we would be in a terrible real estate slump.

How Housing Could Lead the Economy Out of Recession

By Mark Fogarty / National Mortgage News 8-21-09

The American economy may have bottomed out, but that doesn't mean a recovery is imminent, unlike in a couple of European countries that have already seen positive growth in their GDP. So, what can this country do to jumpstart the recovery? It can boost the housing and mortgage sectors even more than it has.
Why would the government want to do this, when housing and mortgages were the biggest factors in the downturn that has hobbled the U.S. economy for almost two years now?
Because, historically, housing (and mortgages) have tended to lead the economy both into, and out of, recessions. The sectors certainly led the national economy into recession this time, with real estate (2006) and mortgages (2007) both cratering before the national economy did in early 2008. But an anemic housing sector is not now poised to lead anything out of anywhere. So the government should consider a strategic and short-term further stimulus.
National Mortgage News 8-21-09

FHA Officials See Strong Demand for SF Loans

Federal Housing Administration officials expect to insure over two million single-family loans in fiscal year 2009, which ends September 30, and 2.25 million in FY 2010.