U.S. Department of Housing and Urban Development (HUD) Secretary Shaun Donovan says that the housing market is moving in the right direction. Speaking yesterday before the Mortgage Bankers Association's National Advocacy Conference, Donovan insisted that a combination of federal policies and recent housing market statistics confirm that recovery is on the way.
‘The fundamentals of what make a housing market work are better than any time since the housing crisis began,’ Donovan said. ‘When you look at home prices, compared to rents, they have clearly brought us back to a place where homeownership is more affordable in a generation.’
Donovan said that although delinquencies and foreclosures are declining, price stability remains elusive. He also stated that maintaining the financial viability of the Federal Housing Administration (FHA) was a major priority.
‘Our goal is to make sure FHA and the housing market are there for the long run, but also to do what we can to make credit available,’ Donovan said. ‘I am very concerned that we do not end up in a place where FHA becomes politicized. I did not like that congress was setting premium changes. I do everything in my power to make sure that FHA remains a consistent force in this recovery and worry that we do not resort to more extreme measures.’