NAHB Urges Congress To Pass New Stimulus Bill

The National Association of Home Builders is urging Congress to pass a new stimulus bill this year that has a more effective tax credit for homebuyers along with an interest rate buydown. Under the buydown plan, the buyers would get a 2.99% interest rate on a 30-year conforming mortgage if they purchase a home before June 30, 2009. The interest rate increases to 3.99% for homes purchased between July 1, 2009 and the end of the year. "Getting consumers off the sidelines will reduce the inventory of unsold homes, stop the erosion of home values in hard hit areas and result in more new and existing home sales," NAHB chief executive Jerry Howard said. The builders also want Congress to scrape the $7,500 first-time homebuyer tax credit Congress included in the first stimulus bill and replace it with a tax credit for all homeowners that covers 10% of the purchase price up to $22,000.