Obama's Weekly Address: Housing Market Crisis

President Obama criticizes congress for not passing his plan to refinance mortgage rates.
3:00 | 09/29/12

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Transcript for Obama's Weekly Address: Housing Market Crisis
Hi everybody. Four years ago this month a crisis that started out on Wall Street almost brought down -- America. The nation's biggest banks -- days away from. The stock market and millions of American retirement accounts weren't free -- Credit froze. Lending stopped and businesses large and small and even know they'd be able to make payroll. This moment the likes of which few Americans had seen before. Today we know the biggest cause of that crisis was reckless behavior housing. Millions of Americans who did the right and responsible. -- home secured mortgage they could afford and made their payments on time were badly hurt by the -- responsible actions of others. My lenders who sold loans to families who could afford and buyers who knew they couldn't afford. By speculators who were -- just make a quick buck. And by banks that packaged and sold those risky mortgages for point profits. The party stopped and housing bubble burst -- pushed our entire economy in to -- historic recession. And left middle class families holding back. Four years later the housing market is -- Home sales and construction are up. Prices are beginning to rise and more than a million families who began this year or more on the mortgages than their homes -- -- are now back -- war. So we're moving in the right direction but we're not there yet. There are still millions of Americans were struggling with their mortgages even at a time -- historically low rates. I know there are some who think that the only option for homeowners' just stand by and hope that the markets -- -- I don't agree with that. That's why my administration teamed up with state attorneys general to investigate terrible way many homeowners were treated and securities settlement from the nation's biggest banks. Banks were bailed out with taxpayer dollars to help families stay in the polls. And that's why we announced new steps to help responsible homeowners refinance their mortgages. Already hundreds of thousands of Americans were stock and high interest rate loans have been able to take advantage of lower rates and save thousands of dollars every year. That's not only good for those panelists it's also good for -- When folks are spending less on mortgage payments they're spending more at local businesses. -- when both businesses have more customers they start hiring more workers. But we can do even more if congress is willing to do their part. Back in February I sent congress a plan to give every responsible -- the chance to save about 3000 dollars a year on their mortgages. By refinancing at lower rates. It's a plan that has the support independent nonpartisan economists and leaders across the housing industry. But Republicans in congress worked to keep it from even getting to a vote and here we are seven months later still waiting on congress to act. This makes no sense. Last week mortgage rates were at historic loss but instead of helping more and more hardworking families take advantage of those rates congress was -- outbreak. It's that -- -- -- -- are to go home to worry about their campaigns. The truth is it's going to take awhile for housing market fully recover. But it's gonna take a lot more time because a lot more hurt if congress keeps standing in the way. If you agree -- me I hope you make your voices were. Call it represented. Seven an email shall in -- town hall and tell them that when congress comes back to Washington. They better come back ready to work. All of you were doing everything you can't -- your responsibilities. I think it's time congress to dissect. Thanks and have a great weekend.

This transcript has been automatically generated and may not be 100% accurate.

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