Housebuilders Come to Congress
Housebuilders in the US are to come before Congress with open hands hoping to secure a stimulus package of $250bn, ten times what the auto industry is looking for. Problem is, any assistance from the Federal Government would need to involve a method to stimulate demand for housing rather than just articifically inflating house prices.
The builders’ lobby is ramping up its sales pitch for a $250 billion stimulus package called “Fix Housing First,” arguing that financial markets won’t recover until home prices stop falling. They are calling for a generous tax credit for home purchases and a federal subsidy that would lower a homeowner’s mortgage rate.
