Homeownership is very much on the downturn according to the U.S. housing index. Due to the worst housing and economical recession since the depression homeownership has declined from a peak of 69.2% in 2004 to 66.4% current.  Homeownership is now at a level since 1998 and could very well decline to a level seen in the early 1980's or lower.  As a result renting has seriously increased as homeowners see little reason to stay in their homes that they cannot sell or refinance.       

Property sales dropped close to 17 percent in February followed by a dismal January. Include a 10% February fall in existing home sales and very low mortgage applications and you get a double dip in housing.

The House of Representatives has voted to kill the Federal Housing Administration's short refinancing program. The FHA Refinance Program Termination Act, was approved by the House, with 18 Democrats joining 238 Republicans in favor of ending the program.

The programs allows underwater borrowers who are current on their loans to refinance into an FHA-insured mortgage if their lender agrees to write off at least 10 percent of their principal -- has gotten off to a slow start. Taxpayers may be on the hook for up to $8 billion to reimburse lenders for a share of their potential losses on the loans.

In regard to the big bank bail outs known as T.A.R.P....  these major banks accepted billions of dollars from the government to save themselves from failing.  When they took this money they were instructed by the O'Bama administration to help homeowners keep their homes with a modification of their loan terms.  This program is currently known as the H.A.M.P. or home affordable mortgage program.  Heres what the banks did.  They took billions in goverment money.  They contacted homeowners in default of their mtg. loans and told them they qualified for a HAMP modification.  They then told homeowners that they would be on a 3 month trial period and pay a reduced mortgage amount based on a lower prevailing interest rate.  If homeowners made their payments on time for 3 months they could expect their mortgage to be modified permanently. The banks then took the payments for well beyond the 3 months and in most cases over 1 year.  Heres the devious part.  After a year or so the banks contacted the homeowners and told them sorry but you didn't qualify for the HAMP program, but thanks for all your money.  Oh, and by the way Mr. and Mrs. homeowner, you owe us the difference between what you were paying and what your original Mtg. amount was including all late fees etc.  Homeowners were then given letters threatening them with immediate foreclosure.  So the banks took the government money, pretended to fulfill their HAMP obligation, and finally took homeowners money well past the 3 month trial period.  At the very least they could have told homeowners after the 3 month trial period expired that they didn't qualify for HAMP saving them thousands of dollars. And finally these crooked banks hired Robo signers to move the foreclosure process along more quickly even though the people hired had no authority to do so.  Many Robo signers have come foward and have admitted that they didn't even look at the foreclosure papers.  What a disgrace!  And big bank credit card policies are just as corrupt.  But thats another blog for another time.   

Some of the largest banks such as Bank Of America, Wells Fargo, Chase and Citi Bank have been found guilty by a federal judge regarding the mortgage servicing scandal known as M.E.R.S. or "robo signings"  Additionally some state attorney's generals are asking for civil fines as well as modifications for borrowers facing foreclosure of their homes.  The O'Bama administration would like to see these banks reduce the principle on homeowners mortgages as well as reduced interest rates.  The administration is hoping that the settlement can get the stalled real estate market back on tract. Not fair you say...... more on that later 

Six of the largest homebuilders in the U.S. believe we will see a comeback in sales this spring.  The most recent housing forecasts from Fannie Mae & the Mortgage Bankers Association also suggest that the housing market may improve greatly.  An increase in home building would of course provide many different jobs such as homebuilding and anything home related.  The question is, will potential homebuyers be able to obtain financing.  Banks have been very stringent with downpayments, terms and approving home loans.