Builders Applaud Fed Report on HousingJanuary 6th, 2012 | Category: Industry News
The National Association of Home Builders (NAHB) agrees with a finding by the Federal Reserve that excessively tight mortgage lending standards are hampering a housing and economic recovery.
“The Federal Reserve’s report to Congress confirms what we have been saying for some time: That extraordinarily tight credit conditions are preventing creditworthy borrowers from obtaining home loans and this is harming the housing market and the broader economy,” says NAHB chairman Bob Nielsen, a home builder from Reno, Nev.
Nielsen adds that the lack of credit extends to housing construction loans as well.
“In scores of markets across the country that are exhibiting signs of job growth and where the inventory of new homes is nearly exhausted, builders should be hiring workers to break ground on new housing developments,” he says.
In normal times, housing accounts for more than 17 percent of the nation’s economic output. Constructing 100 new homes creates more than 300 full-time jobs, $23.1 million in wage and business income and $8.9 million in federal, state and local tax revenue, according to the NAHB.
“Removing the obstacles limiting access to mortgage credit and enabling builders to obtain construction loans to build in markets where demand is firming is imperative to get housing back on track, to put our nation back to work and to keep the economy moving forward,” says Nielsen.