The Obama Housing Fix: 5 Things to Know

4. Keeping mortgage rates low: The administration is also looking to ensure that mortgage rates remain attractive, which could help pull more buyers into the housing market. To that end, Obama said the Treasury Department would double, to $400 billion, its funding commitments to Fannie and Freddie in an effort to ensure they have the resources they need to support the mortgage market. At the same time, Fannie and Freddie will increase the size of their retained mortgage portfolios by $50 billion to $900 billion.

Analysis: Keith Gumbinger of HSH Associates said the increase in Fannie and Freddie's retained portfolios could result in modestly lower mortgage rates. "It could provide some downward pressure [on mortgage rates]," Gumbinger said. "But $50 billion isn't all that much."

5. Bankruptcy reform: The president also expressed support for allowing judges to alter the terms of mortgages on primary residences during bankruptcy proceedings. Supporters of such a measure argue that it is an effective tool to help struggling borrowers stay in their homes.

Analysis: But Moody argues that this measure could work against a recovery in the housing market by increasing borrowing costs for consumers. Allowing bankruptcy judges to alter the terms of the original mortgage contract makes home loans more risky, he said. As a result, "anyone who is going to be either lending or investing under these conditions is going to demand more protection in the form of higher fees or higher interest rates," he says. Those expenses will then be passed on to the consumer in the form of higher borrowing costs, Moody says.