Homebuilders push housing aid
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AP
Oluşturulma Tarihi: Ocak 09, 2009 00:00
WASHINGTON - With lawmakers angling to pass an economic recovery package by the middle of next month, desperate homebuilders from around the country flew to Washington to spend Wednesday pushing a $150 billion plan to revive the housing market.
The National Association of Home Builders brought around 80 builders - mainly from smaller, privately owned companies - for meetings with lawmakers from their districts, particularly those on committees that will handle President-elect Barack Obama's economic rescue package.
"Don't take their usual squishy answers," exhorted Jerry Howard, chief executive of the home builders' trade group in a feisty Wednesday morning pep talk. "We need to know today: Are you with us or not?"
The home building industry has been devastated by the housing market bust. The builders argue that plunging home prices and sales are causing widespread suffering for businesses ranging from interior decorators to sellers of faucets, lumber and blinds. Massive government intervention is needed, they say, to boost home sales and prevent foreclosures from further flooding the market.
Builders want a package of subsidies that would bring mortgage rates to just under 3 percent for the first half of this year. They also favor a tax credit of up to $22,000 for home purchases.
Still, broad housing aid is not expected to be part of Obama's economic stimulus plan. Housing relief seems more likely to be part of a separate bill outlining new rules for the remaining $350 billion in financial industry bailout money.
"They want to get the stimulus passed quickly," said Mark Zandi, chief economist at Moody's Economy.com. "If they bring in the housing-related issues, it might get unwieldy."
Obama, in an interview with CNBC, said he plans to work with lawmakers and to unveil a foreclosure prevention plan within the next two months. "I think the most important thing when it comes to declining home values is number one, preventing further foreclosures," Obama said. "That just erodes home values across the board."
With the economy sinking, lower mortgage rates and tax incentives may not be very effective.
"Don't take their usual squishy answers," exhorted Jerry Howard, chief executive of the home builders' trade group in a feisty Wednesday morning pep talk. "We need to know today: Are you with us or not?"
The home building industry has been devastated by the housing market bust. The builders argue that plunging home prices and sales are causing widespread suffering for businesses ranging from interior decorators to sellers of faucets, lumber and blinds. Massive government intervention is needed, they say, to boost home sales and prevent foreclosures from further flooding the market.
Builders want a package of subsidies that would bring mortgage rates to just under 3 percent for the first half of this year. They also favor a tax credit of up to $22,000 for home purchases.
Still, broad housing aid is not expected to be part of Obama's economic stimulus plan. Housing relief seems more likely to be part of a separate bill outlining new rules for the remaining $350 billion in financial industry bailout money.
"They want to get the stimulus passed quickly," said Mark Zandi, chief economist at Moody's Economy.com. "If they bring in the housing-related issues, it might get unwieldy."
Obama, in an interview with CNBC, said he plans to work with lawmakers and to unveil a foreclosure prevention plan within the next two months. "I think the most important thing when it comes to declining home values is number one, preventing further foreclosures," Obama said. "That just erodes home values across the board."
With the economy sinking, lower mortgage rates and tax incentives may not be very effective.