The National Association of Home Builders added its voice to those applauding the Federal Reserve’s decision to cut a key interest rate to its lowest level in almost four years.
“The Fed's action to cut the federal funds rate by a quarter of a percentage point will help prop up the ailing economy,” said Sandy Dunn, a home builder from Point Pleasant, W. Va., who currently serves as NAHB president.
On Wednesday, the board cut the interest rate banks change each other on overnight loans in 2 percent, the lowest it’s been since late 2004.
The rate affects everything from mortgage loans to credit cards, and the U.S. government hopes the change will help grow the struggling national economy.
While it hailed the move, Dunn said the NAHB wants the government to do more.
“Now it's time for Congress to do its part," she said. "Today, more than 1,200 builders are in Washington calling on lawmakers to avert an economic crisis by swiftly enacting a housing stimulus package that will jump-start housing, save jobs and restore confidence."
Pass a temporary tax credit for home buyers, Dunn urged.
“This will provide an immediate shot in the arm. It will get consumers off the fence, stimulate home buying and reduce excess supply in housing markets,” she said. “The home buyer tax credit worked in the 1970s when the economy was in recession. We need it now.”