Housing Issues in the 114th Congress (CRS Report for Congress)
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| Release Date |
Revised Feb. 21, 2017 |
| Report Number |
R44304 |
| Report Type |
Report |
| Authors |
Katie Jones, Coordinator; David H. Carpenter; Sean M. Hoskins; Mark P. Keightley; Maggie McCarty; Libby Perl; N. Eric Weiss |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
Housing and residential mortgage markets in the United States are continuing to recover from
several years of turmoil that began in 2007-2008, though the recovery has been uneven across the
country. Nationally, home prices have been consistently increasing since 2012. Negative equity
and mortgage foreclosure rates have been steadily decreasing, though both remain elevated.
Home sales have begun to increase, with sales of existing homes approaching levels that were
common in the early 2000s, though sales of new homes and housing starts remain low.
Mortgage originations have remained relatively low despite ongoing low interest rates, leading
many to argue that it is too difficult for prospective homebuyers to qualify for a mortgage. Some
believe that this is because mortgage regulations put in place in recent years are restricting access
to mortgages for creditworthy homebuyers, while others hold that these rules provide important
consumer protections and suggest that other factors are limiting mortgage access. Nearly threequarters
of new mortgages continue to be backed by Fannie Mae or Freddie Mac or insured by a
government agency such as the Federal Housing Administration (FHA) or the Department of
Veterans Affairs (VA), with the remaining mortgages mostly being held on bank balance sheets.
In the rental housing market, vacancy rates have continued to decline and rents have continued to
increase as more households become renters. Although the supply of rental housing has also
increased, it has generally not kept pace with the increasing demand. Rising rents have
contributed to housing affordability problems, which are especially pronounced for low-income
renters.
The 114th Congress has been considering a number of housing-related issues against this
backdrop. Some of these issues are related to housing for low-income individuals and families,
including appropriations for housing programs in a limited funding environment, proposed
reforms to certain rental assistance programs administered by the Department of Housing and
Urban Development (HUD), debate over funding for two affordable housing funds (the Housing
Trust Fund and the Capital Magnet Fund), and the possible reauthorization of the main program
that provides housing assistance to Native Americans. Congress has also taken the occasion of
HUD’s 50th anniversary to reflect on the department’s role through hearings and other actions.
Congress has also been deliberating on certain housing finance-related issues, including possible
targeted changes to Fannie Mae and Freddie Mac, oversight of mortgage-related rulemakings, and
issues related to the future and financial health of FHA.
Two fair housing issues have also been active in the 114th Congress. HUD recently released a new
rule updating certain HUD grantees’ responsibilities to “affirmatively further” fair housing.
Separately, the Supreme Court issued a decision affirming that disparate impact claims are
allowable under the Fair Housing Act. Congress has expressed interest in both of these
developments.
As in recent years, the 114th Congress has considered several housing-related tax provisions as
part of a broader tax extenders bill. These housing-related provisions include extensions of the
exclusion for canceled mortgage debt, the deduction for mortgage insurance premiums, and
provisions related to the low-income housing tax credit.
