NAHB Freezes All PAC Contributions

The National Association of Home Builders has frozen all political contributions out of frustration with what it deems feeble efforts by the Bush administration and Congress to stabilize the housing market and stimulate homebuying. "More needs to be done to jump-start housing and ensure the economy does not fall into recession," NAHB president Brian Catalde said. "This action [to cease all NAHB Build-Pac contributions] will remain in effect until further notice." Congress recently rebuffed the builders' request to include a tax credit for homebuyers in the recently passed economic stimulus bill. "We need something powerful to stimulate homebuying," NAHB chief economist David Seiders said, particularly for buyers of new homes and inventory. "We've got to get this inventory knocked down or the chances of getting a housing recovery are really tenuous," he said at the builders' annual convention in Orlando, Fla. Mr. Seiders voiced optimism that the housing market will stabilize later this year, which would help the credit markets and the overall economy. But he warned that all bets are off if housing prices continue to drop. "We already have an unprecedented decline in house values," he said.