Henry Ramirez

The National Association of Home Builders (NAHB) applauded House and Senate legislation to address the housing crisis and economic slowdown.  

"The bills passed last month by the full Senate and by the House Ways and Means Committee are an important step in the process of enacting comprehensive housing legislation that will shore up housing and the economy," said Jerry Howard, executive vice president and CEO of NAHB. "We will continue to work on a bipartisan basis with lawmakers in both chambers and with the Bush Administration to produce the most effective legislation to help ailing homeowners and restore consumer confidence."  

The House and Senate versions contain several provisions that will help home buyers, homeowners, strapped borrowers facing foreclosure, state and local governments experiencing budget woes, veterans and businesses suffering losses in the current economic climate.  

But one provision stands out as the most effective means to boost housing demand and stabilize the market, according to Howard.  

"Enacting a broad, temporary tax credit for the purchase of a home would provide the best stimulus for housing and the economy," he said. "We urge House and Senate lawmakers to keep this in mind as they move to bridge their differences and enact into law the best possible bill to help distressed homeowners and to jump-start housing and the economy."  

The Federal Reserve has already taken aggressive measures to stabilize financial markets and increase liquidity in the credit markets. The central bank has also taken unprecedented actions to make funds available for investment banks squeezed for credit.