America’s economy is looking better and better with each passing day. Not only is the housing market contributing to growth, but corporations are flushed with cash and consumers are steadily paying down their debts. Moreover, the net exports are meaningfully improving because of the energy renaissance in North Dakota and Pennsylvania. GDP (gross domestic product, the measurement of everyone’s income all combined) could rise at a 3 percent rate in the first quarter as a result. If such a growth rate can be sustained for the remainder of the year, then it would mark the first “field goal” success for President Obama. Historically, GDP in America grows at 3 percent a year – the reason for using the 3-point field goal analogy. President Bush kicked two field goals in his eight years, while President Obama has yet to make one to date.
The FHA has been in the headlines a lot recently. So have assertions regarding how large of a presence the institution has in the housing market. The FHA’s significance varies based on which benchmark you are measuring it next to; the total sales market, the purchase mortgage market, or the mortgage insurance market. But by whichever measure, the FHA’s role is on the decline. Regulatory changes to the secondary market must first take place, though, for the FHA to withdraw to its historic position.