The government bodies that influence the national fiscal policies that potentially affect the housing market are the Federal Reserve. This body decides the rise and fall of interest rates. If the rate decreases, more money is introduced into the economy. The interest rates to decrease and therefore increase the demand for the housing market and then solidifies the prices of homes.

And if the rate increases, less money goes into the economy and interest rates will increase and the demand for houses will fall.One more government body that will influence the national fiscal’s policies is The Department of Treasury. The Home Affordable Refinance program was introduced by The Department of Treasury in 2009 to help homeowners who have a solid payment history on an existing mortgage owned by Fannie Mae or Freddie Mac. These home owners were able to refinance their home loans and take advantage of today’s lower mortgage rates. There are many national fiscal policies that can affect the mortgage rates, housing starts, and housing prices.

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The most important issue is the lending rates. If lenders can borrow money from the Federal Reserve to put money into mortgages and housing starts that would help boost the economy. The mortgage prices are based off of the interest rates so the higher the interest rates the higher the mortgage payment will be. And if the mortgage rates get too high homeowners will not be able to afford their home loans, and people looking to buy will not be able to purchase causing the home and banking industry to fall.

The recommendations that I would give to the risk and the benefits of purchasing a home based on these considerations are for all first time buyers to consider purchasing a home to use either the first time home buyers or the FHA loans. I recommend one of the two because the programs go through the entire home purchasing details and benefits and help find the right loan for you and your family. It’s a lot easier to go through a program your first time because people who are more knowledgeable in that area will be able to walk you through the process to ensure you get the best value for your money.