Mark Zandi
The FHA's success provides strong evidence that government can and should play a role in the nation's mortgage finance system. It also demonstrates that although government intervention in the economy during the Great Recession was messy, things would have been a lot messier without it.Collection: Finance
In the fourth grade, my history teacher gave us a project: Why was the auto industry located in Detroit, Michigan? I didn't know I was going to be an economist, but I knew I was going to do something that was involved in answering questions like that one because I thought that was a fascinating question.Collection: Teacher
Our economy isn't going to recover until the housing market finds its footing.Collection: Economy
Potential home buyers have a two-step decision process. First, they determine whether they can afford to make a purchase - does their income safely cover their mortgage payment? Then they determine whether owning is a better financial choice than renting - are the costs of owning a home lower than the cost of renting it?Collection: Home
A housing renaissance has begun. This may be hard to believe after the dizzying, six-year-long crash in home sales, construction and house prices. But housing turned the corner last year, and it will take off in 2013.Collection: Believe
If Mr. Trump gets precisely the policies he says he wants, then the economy will suffer a recession.Collection: Suffering
Housing was ground zero for the Great Recession. Between early 2006 and Obama's inauguration in 2009, average house prices fell by a third across the country. In certain areas, including cities as diverse as Akron, Orlando and Las Vegas, house prices fell by more than half.Collection: Country
The key to house prices is the share of foreclosure or short sales in the total housing market. When that share rises, house prices will fall, because distressed properties sell for significantly less - currently around 25 percent below non-distressed houses.Collection: Fall
The discussion in Washington has changed dramatically. I mean, it's no longer a question of should we address entitlements - it's no longer a question of do we need to reduce spending in the future.Collection: Mean
Predicting recessions is indeed a dark art, but I think we are several years away from the next one.Collection: Art
It has become fashionable to rail against government intervention in the economy, and the FHA is a favorite example by those trying to show the government's overreach. In reality, the FHA shows how government action during the Great Recession forestalled a much worse economic fate.Collection: Fate
Our biggest challenge is to eliminate the popular perception that economists don't have anything useful to say.Collection: Challenges
Investor demand for distressed property has been healthy, as rents rise to levels that can cover investors' costs while they wait for properties to appreciate. Giving investors a small tax break should further juice up demand, supporting prices for distressed homes and the market in general.Collection: Home
The upshot of Mr. Trump's economic policy positions under almost any scenario is that the U.S. economy will be more isolated and diminished.Collection: Economic
Defaulting on the nation's debt would be cataclysmic. The U.S. Treasury's Aaa rating is the one constant in the world's financial system. When times are bad anywhere on the planet, global investors flock to Treasury bonds because they know they will get their money back.Collection: Would Be
I only have two things in my life, my family and work. If there's any time left over, then I play sports.Collection: Sports
Indeed, the FHA was born out of the Great Depression, which was also caused in significant part by a foreclosure crisis. Mortgages in the early 1930s were mostly three- to five-year 'bullet' loans, which did not amortize and were due in full at maturity.Collection: Maturity
Global central banks are working hard to lift their economies through an aggressively easy monetary policy. The ECB [European Central Bank] and BOJ [Bank of Japan] are buying tens of billions of bonds and other financial securities each month in an effort to stimulate their economies, which is pushing down rates everywhere, including in the U.S.Collection: Japan
It is hard to be enthusiastic about the economy's prospects when house prices are falling: Households spend less, small business owners can't use homes as collateral for loans and local governments are forced to cut jobs and programs as property-tax revenue disappears.Collection: Jobs
In a forbearance, the homeowner pays interest and principal on a smaller mortgage, at least for a time, but still owes the full amount. The lower monthly payment helps with affordability, giving stressed homeowners a break.Collection: Giving
Distressed properties are often vacant and in disrepair, and thus sold at significant discounts. As the share of distressed sales grows, home prices fall.Collection: Fall
At the center of every recession is a serious imbalance in the economy and mirrored in the financial system. Think subprime mortgage and the Great Recession, or the technology bubble and the early 2000s recession. There are no such imbalances today.Collection: Technology
No one should expect the value of their house to appreciate quickly - counting on your home to be a significant part of your retirement saving isn't a winning strategy - but it is reasonable to expect that prices generally will rise with at least the rate of inflation for some time to come.Collection: Retirement
Lenders look at potential borrowers from many angles before extending credit: How much of its income will a household need to put into debt repayment? How large is the down payment? Does the borrower have a job with a stable income? What is the borrower's credit score?Collection: Jobs
The average credit score of today's FHA borrowers is higher than the average American household with a score. As it becomes more costly and difficult to get a FHA loan, loans from private mortgage lenders will become more attractive and their market share will grow.Collection: Average
The Bush tax cuts should be extended permanently for families with annual incomes of less than $250,000 and should be phased out slowly for those making more than that. Raising taxes on anyone now, when the economic recovery is so fragile, would be a mistake.Collection: Mistake
The Obama administration deserves credit for quickly ending the housing free fall. In particular, Obama empowered the Federal Housing Administration to ensure that households could find mortgages at low interest rates even during the worst phase of the financial panic.Collection: Fall
There is no better way to quickly buoy hard-pressed homeowners than helping them take advantage of the currently record low fixed mortgage rates and significantly reduce their monthly mortgage payments.Collection: Records
There is plenty of blame to go around for the U.S. housing bubble, but not much of it belongs to Fannie Mae and Freddie Mac. The two giant housing-finance institutions made many mistakes over the decades, some of them real whoppers, but causing house prices to soar and then crater during the past decade weren't among them.Collection: Real
I'm a registered Democrat.Collection: Democrat
An overheating economy, characterized by accelerating inflation and rising interest rates, is another precondition for recession. This doesn't describe today's economy.Collection: Rising
The most important point is, in a time of crisis, there is no way out but for the government to be bold and aggressive.Collection: Government
There is a banking adage that if it's growing like a weed, it's a good chance that it's a weed.Collection: Weed
Yes. I don't think it would be appropriate at this point to raise taxes on anyone, certainly not in 2011.Collection: Thinking
A home is still the biggest asset that most Americans own.Collection: Home
In a normal time, I don't think economic policy makes a large difference one way or another. But in times of crisis it makes all the difference in the world.Collection: Thinking
Buying a home wouldn't make much sense if house prices were likely to decline further; no one wants to catch a falling knife.Collection: Fall
I've done work for both Democrats and Republicans.Collection: Done
The principal linkages between Japan and the U.S. global economies are trade, financial markets, and commodity markets.Collection: Japan
Past experience with fiscal austerity at home and overseas strongly suggests that it is best for the economy's long-run performance to restrain government spending rather than raise taxes.Collection: Running
The extension and expansion of the payroll tax holidays for workers would be number one on my list and key to avoiding recession.Collection: Holiday
There are different flavors of recession. You can get into some pretty dark scenarios pretty quickly.Collection: Dark
My policy is I will help any policymaker who asks, whether they be a Republican or a Democrat.Collection: Helping
The Tea Party was born out of the disgust many Americans felt early in the financial crisis upon learning that the federal government was even contemplating reducing the principal on some troubled mortgages.Collection: Party
We need to get rid of the debt ceiling law. It's anachronistic and it's a problem.Collection: Law
They called me the sexiest economist in America, and that was years ago, when I had hair and body mass and my teeth were shiny.Collection: Hair
Too-easy credit and millions of bad loans made during the U.S. housing bubble paved the way for the financial calamity and Great Recession that followed. Today, by contrast, credit is too tight. Mortgage loans are particularly hard to get, creating a problem for the housing market and the broader economy.Collection: Creating