NBN Online for the week of February 25, 2008

Effort to Spur Home Sales Needed to Shore Up Economy

With reports from crucial markets around the country that the traffic of prospective home buyers has been picking up even as tighter mortgage financing conditions remain a hurdle for many, the NAHB Board of Directors at its Feb. 15 meeting in Orlando announced that the association will be making a major drive to pass individual pieces of legislation that will stimulate housing sales and help builders work down their unsold inventories.

2007 NAHB President Brian Catalde reported to the board that the association had seen “important results” in response to its “relentless” efforts to ease the credit crunch, which began choking off home sales at the end of the last summer with the revelation of problems in the subprime mortgage market.

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Fannie, Freddie Ramping Up to Buy Jumbo Mortgages

NAHB leaders in Orlando earlier this month during the International Builders’ Show were told that Fannie Mae and Freddie Mac will begin  purchasing home loans above the current $417,000 conforming loan limit within weeks of receiving clearance from federal regulators.

On Feb. 13, the same day that President Bush signed a $168 billion economic stimulus package allowing the two housing government sponsored enterprises (GSEs) to purchase loans up to $729,750 through the end of this year, Freddie Mac CEO Richard Syron and Fannie Mae CEO Dan Mudd pledged to work with NAHB to stabilize the housing sector.