In 2002, President George W. Bush, trumpeting “the ownership society,” proclaimed, “We want everybody in America to own their home.” Never mind the bursting of the housing bubble; it’s still the Washington creed. That’s why Fannie Mae and Freddie Mac, the government agencies that now guarantee most home loans in the U.S., just announced that they will guarantee mortgages for first-time home buyers who make down payments of just three per cent. Advocates argue that this will make it easier for low-income families to buy homes, and will give a boost to the sluggish housing market.
It’s an easy sale to make. Since the nineteen-thirties, the U.S. government has been committed to the idea that homeownership is an unalloyed good. The list of things the government does to support the housing industry is long. The Federal Housing Administration offers low-interest mortgages.
