The federal government plays a substantial role in the housing market. Fannie Mae and Freddie Mac purchase and guarantee loans from banks and other lenders, while the Federal Housing Administration and some other agencies increase the availability of mortgages by assuming most of the risk of default on loans to eligible homebuyers. In addition, the federal tax code encourages home ownership by allowing deductions of mortgage interest and property taxes and excluding most capital gains from taxation when a home is sold. CBO's work assesses the effects of such policies and analyzes proposals for legislation that would affect the housing market.
Housing
featured work
Growth in Means-Tested Programs and Tax Credits for Low-Income HouseholdsFeb 2013 - During the past 40 years, federal spending for major means-tested programs and tax credits for low-income households more than tripled as a share of gross domestic product. In 2012, such spending totaled $588 billion.
Fannie Mae, Freddie Mac, and the Federal Role in the Secondary Mortgage MarketDec 2010 - This study looks at how Fannie Mae and Freddie Mac evolved into the institutions they are today.
The Budgetary Cost of Fannie Mae and Freddie Mac and Options for the Future Federal Role in the Secondary Mortgage MarketJune 2011 - Testimony before the Committee on the Budget, U.S. House of Representatives.
Accounting for FHA's Single-Family Mortgage Insurance Program on a Fair-Value BasisMay 2011 - Letter to the Honorable Paul Ryan.
An Overview of Federal Support for HousingNov 2009 - This CBO brief describes, in broad terms, the array of federal activities that support housing and the expansion of particular programs.
latest work
Growth in Means-Tested Programs and Tax Credits for Low-Income Households
reportFebruary 11, 2013Federal Programs that Guarantee Mortgages—February 2013 Baseline
data or technical informationFebruary 5, 2013H.R. 6429, STEM Jobs Act of 2012
cost estimateNovember 28, 2012Taxation of Owner-Occupied and Rental Housing: Working Paper 2012-14
working paperNovember 5, 2012S. 65, Hawaiian Homeownership Opportunity Act of 2011
cost estimateOctober 24, 2012H.R. 5747, Military Family Home Protection Act
cost estimateSeptember 21, 2012H.R. 6361, Vulnerable Veterans Housing Reform Act of 2012
cost estimateSeptember 14, 2012S. 3085, Responsible Homeowner Refinancing Act of 2012
cost estimateAugust 24, 2012
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