NAHB Applauds Fed Rate Cut

WASHINGTON – The National Association of Home Builders (NAHB) this week applauded the Federal Reserve Board's aggressive action to cut interest rates by 75 basis points to help jump-start the economy.

NAHB also echoed Treasury Secretary Henry Paulson's comments this morning before the U.S. Chamber of Commerce on the need for Congress to move swiftly to address the current housing situation by enacting the following legislation: FHA modernization to increase the availability of affordable FHA mortgages; comprehensive reform of Fannie Mae and Freddie Mac that allows them to temporarily buy larger home loans in high-cost markets; and allowing cities and states to issue tax-exempt mortgage bonds to refinance existing loans to help troubled borrowers.

"The Federal Reserve has set the tone by taking a decisive step to cut interest rates, now it's time for Congress to move quickly and pass these three bills," said NAHB President Brian Catalde, a home builder from El Segundo, Calif. "The Fed rate cut, action on these three bills and enacting an economic stimulus package is absolutely vital to restore consumer and business confidence on Main Street and Wall Street."