[Weekly Compilation of Presidential Documents Volume 40, Number 14 (Monday, April 5, 2004)]
[Pages 494-495]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
The President's Radio Address

March 27, 2004

    Good morning. This week brought good news about homeownership in 
America. The Census Bureau reported that new home sales in February rose 
to an annual pace of 1.16 million homes, a 24-percent increase over the 
past year. This success follows one of the most impressive years in 
America's housing industry. More homes were sold in 2003 than ever 
before. Housing starts last year were at their highest level in a 
quarter century. Rising home values have helped take the wealth of 
American households to a new record level.
    In our growing economy, more Americans can afford a new home. 
Incomes are rising. The unemployment rate is falling. Mortgage rates are 
low. And because of tax relief, Americans have more to save, spend, and 
invest, and that means millions of American families have moved into 
their first homes.
    Our Nation's 68-percent homeownership rate is the highest ever, and 
our Government is taking steps to make owning a home a reality for more 
Americans, especially minorities and those with low incomes. In June 
2002, I set the goal of adding 5.5 million new minority homeowners in 
America by the end of this decade. Since then, more than 1.5 million 
minority families have moved into houses of their own, and for the first 
time, most minorities own their own home.
    We are building on this progress. I have signed into law the 
American Dream Downpayment Act, which will help low-income Americans to 
afford the downpayment and closing costs on their first home. I'm asking 
Congress to provide an annual $200 million for this program. That 
additional money would help an estimated 40,000 low-income families 
every year become first-time homeowners. I'm proposing that we make zero 
downpayment loans available to first-time buyers whose mortgages are 
guaranteed by the Federal Housing Administration. And this will help 
about 150,000 families buy homes in the first year alone.
    Another obstacle to homeownership is the often complicated process 
of buying a home and getting a loan. My budget for 2005 would more than 
double funding for housing counseling services from 2001 levels. A house 
and a mortgage represent a big personal commitment, and we want to 
prepare more Americans to make that commitment with confidence. To make 
homeownership attainable for more of our citizens, I have asked Congress 
to create a tax credit to encourage the construction of affordable 
homes. Under my proposal, builders will have an incentive to provide an 
additional 200,000 affordable homes over 5 years for families with low 
incomes.
    And finally, we are encouraging the real estate and mortgage finance 
industry to join in our efforts in closing the homeownership gap. More 
than two dozen major companies and organizations have committed to 
extending more loans to low-income families, financing the construction 
of more affordable homes, and providing financial counseling to 
potential buyers. These policies will make a difference in the lives of 
millions of Americans.
    This week, I met with Lori Benavidez, a single mom living in 
Albuquerque, New Mexico. Last November, with the help of a Federal 
homeownership program, she moved into her first home. Here's what Lori 
says: ``I never thought the day would happen

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when my girls and I would be sitting in our own home. It is a miracle.''
    Every time a family moves into a home of their own, it fulfills a 
dream, and it shows faith in the future, and that faith is well-placed 
because America's economy is strong and it is getting stronger.
    Thank you for listening.

Note: The address was recorded at 7:03 a.m. on March 26 in the Cabinet 
Room at the White House for broadcast at 10:06 a.m. on March 27. The 
transcript was made available by the Office of the Press Secretary on 
March 26 but was embargoed for release until the broadcast. The Office 
of the Press Secretary also released a Spanish language transcript of 
this address.