WASHINGTON — The Obama administration has no plans to introduce another large- scale program for relieving the troubled housing market, despite the president’s recent admission that his past efforts have not solved the problem, according to a senior administration official.
President Barack Obama’s acknowledgment that the weak housing market had become one of his administration’s chief burdens set off industry speculation that there could be another large government offensive to jump-start the sector.
But experts said the government’s options are limited. There isn’t likely to be the money or political will to push through any significant legislation to address the problem, they said. And the evolution of the housing crisis may have pushed it beyond quick policy fixes.
Yet housing remains one of the biggest drags on the economic recovery and threatens to loom over the 2012 election. Millions of borrowers are facing foreclosure, while others are stuck in homes worth less than they owe, leaving them feeling cash-strapped at a time when consumer spending is needed to fuel economic growth.
“There is no money, and to some degree, we have run out of ideas. I have seen them all,” said Mark Zandi, chief economist at Moody’s Analytics. “I don’t think there is something grand that could make a big difference.”
