Washington, DC — The National Association of Home Builders has called on Congress to make housing incentives a key part of any economic stimulus package being crafted on Capitol Hill.
“Any stimulus plan needs to address the current housing downturn in order to stabilize financial markets and get the economy moving forward,” said Brian Catalde, president of the Washington, DC-based NAHB.
Catalde also urged Federal Reserve policymakers to enact further interest rates cuts “to restore confidence and increase liquidity in the financial markets.”
Among a series of other measures, the NAHB urged lawmakers to consider creating a tax credit for the purchase of a home. The association also backed expanding the mortgage revenue bond program, which allows state and local governments to issue tax-exempt debt that may be used to finance mortgages at below-market rates.
The National Association of Realtors also urged President George W. Bush and Congress to help homeowners and the national economy by loosening constraints on Fannie Mae and Freddie Mac as an integral part of the federal stimulus package being discussed as of press time.
The Washington, DC-based NAR has been calling on Congress and the administration to increase the loan limits for Fannie Mae and Freddie Mac from the current ceiling of $417,000 to $625,000.
The change would permit more families to enter the housing market by making more mortgages available with lower interest rates, the association said.
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