Special Edition - NBN Online for the week of August 20, 2007

NAHB Works to Address Undue Tightening of Mortgage Credit

Responding to recent deterioration in the nation’s financial markets, NAHB has scheduled meetings in Washington, D.C. and New York with key government officials and leaders in the investment community to pursue a course of action that will add liquidity to the mortgage markets, stabilize housing and reduce downside risks that could push a fundamentally healthy U.S. economy into recession.

NAHB continues to forecast moderate but slowing growth for the U.S. economy, some increase in unemployment and further improvement on the inflation front, but “financial market conditions currently pose considerable downside risks” to that outlook, David Seiders, the association’s chief economist, cautioned last week.

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Lumber Prices Provided by Random Lengths

SPECIAL EDITION

No regular edition of Nation's Building News was scheduled for Aug. 20.

However, following major developments in the financial markets last week, this abbreviated special edition is being published to keep NBN readers up-to-date on efforts now underway at NAHB to address the growing credit crunch in the nation's mortgage markets.

NAHB Corrects ‘Doom and Gloom’ Reporting on Housing Market

NAHB has been stepping up new media appearances and interviews in recent weeks in order to explain the complex dimensions of the current housing downturn and credit crunch and correct some of the sensationalistic reporting that has made market conditions sound worse than they actually are in an effort to boost ratings or sell newspapers.

Appearing on CNBC’s “Wall Street Journal Report” on July 29, Jerry Howard, the association’s executive vice president and CEO, reminded viewers of the advantages in today’s buyer’s market for families that are looking for a place to live or are interested in making a long-term investment. There is a lot to choose from in the current market, he said, and mortgage interest rates remain at favorable levels.

New Online NAHB Resources for Members Coming Next Month

NAHB is compiling new materials to help builders cope with the realities of the changing market in an online toolkit that is scheduled to be available to members next month.

The new materials, an upgrade of the "Back to Basics: NAHB’s Toolkit for a Changing Environment" launched a year ago, include resources and tips on topics ranging from market research and financing to sales and marketing, business management, the Internet and more.