| March 23, 2009 |
By Joe Robson
NAHB Chairman and
Jerry Howard
NAHB President and CEO |
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Mortgage rates are dropping
in response to Federal Reserve moves that were announced on March 18 to help unlock the sluggish credit and housing markets.
 The Fed said it would buy up to $300 billion in long-term Treasury bonds over the next six months and purchase up to an additional $750 billion in mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac (bringing total agency MBS purchases this year to $1.25 trillion). The Fed said it also plans to double its purchases of Fannie and Freddie debt to $200 billion. These moves are expected to put significant downward pressure on mortgage rates as well as on rates for consumer and business debt, hopefully spurring greater economic activity across the board. In response to the announcement, some banks' mortgage rates had already dropped between an eighth and a quarter of a point as of March 19. This is great news for current homeowners seeking to refinance to a lower rate and also for many potential home buyers who have been sitting on the fence, waiting for the right reason to get back in the market. Read more here and in the next NBN Online. Contact: Dave Ledford, x8265.
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Nearly 1,000 NAHB members and HBAs dialed in
for our free teleconference on how to market and use the newly enhanced, $8,000 first-time home buyer tax credit. If you missed it, you can link to a free replay now.
There's no telling exactly how many people were listening in on group calls on March 16, but what we do know is that this was easily one of NAHB's most successful teleconferences on record. Marketing experts on the call said that many builders may be underestimating the mileage they can derive from the credit, and that most smaller builders are missing out on a good opportunity to market the credit to prospective buyers. Many big builders have placed major banners heralding the tax credit on their Web sites, while at least two (Lennar and Centex) have added flash productions that allow visitors to click through to information explaining the credit and the availability of attractive mortgage interest rates. Because educating consumers about the credit is key to improving home sales, NAHB has created a detailed list of frequently asked questions that association members can deploy to provide information to the home-buying public at: www.federalhousingtaxcredit.com/. NAHB members can also bolster their business with a range of promotional materials posted at: www.nahb.org/2009stimulus. Complete coverage of the teleconference appeared in the March 16 edition of NBN Online. To hear a full replay of the event, please visit: www.nahb.org/teleconference. Contact: Blake Smith, x8583.
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Housing starts rose for the first time in eight months
 this February, according to numbers reported by the U.S. Commerce Department on March 17. The welcome good news of a 22.2% gain in starts to a seasonally adjusted annual rate of 583,000 units was tempered somewhat by the fact that it came on the heels of the worst month in history for new-home production in January. Also, the majority of the gain was tied to characteristic volatility on the multifamily side, where starts rose 82.3% to a 226,000-unit pace in February. Meanwhile, single-family starts were up just 1.1% to a 357,000-unit pace. Even so, the fact that builders pulled a larger volume of single-family permits in January does suggest a glimmer of hope for the prime home buying season, which is near at hand. Read our press release for more, or see the government's official report online. Contact Paul Lopez (x8409) for help with media inquiries.
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NAHB's Housing Market Index (HMI) held steady in March,
 indicating that builder confidence in the market for newly built single-family homes is unchanged from February and still hovering in the single-digits for a fifth consecutive month. While builders are hopeful that the recent economic stimulus package – and particularly the first-time home buyer tax credit – will have a positive impact on consumer behavior and home sales as we head into the prime home buying season, it's still too soon to tell how much of an impact that will be. Meanwhile, many respondents to the HMI survey indicated that potential buyers are reluctant to purchase a home because of ongoing uncertainty about their job security and the overall economic outlook. Home builders are also reporting that tight credit conditions are posing further hurdles for first-time buyers, while potential trade-up buyers are still finding it very tough to sell their existing homes so they can make a move. The HMI held even at 9 in March, with two of its three component indexes unchanged from the previous month. Read NAHB's press release or see the HMI tables online. Contact Gopal Ahluwalia (x8480) or Ashok Chaluvadi (x8482) for help interpreting the HMI data; contact Paul Lopez (x8409) for help with media inquiries.
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NAHB's Quick Issues Index document has been updated
 in preparation for this week's March Executive Board Meeting and Legislative Conference that's being held here in Washington, DC. This document provides you with a quick summary of top NAHB Advocacy issues on which there have been significant developments since the last meetings of the Executive Board and NAHB Board of Directors. It also tells you where to go for more information on any topic, with links to online resources as well as contact information for staff experts. The Quick Issues Index is available at: www.nahb.org/issuesindex (Note: you must be logged into the NAHB Web site with your member ID and password to view this resource). Contact: Samantha Silver, x8450.
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Putting Facebook and YouTube to work for home builders,
 NAHB is utilizing popular social networking technology to educate first-time home buyers – especially newly-married couples and recent college grads in their 20s and 30s – about the newly implemented $8,000 first-time home buyer tax credit. After all, such sites are fast becoming the most popular way for people around the world to connect with each other and share information – so why not utilize them for a good cause? Accordingly, you'll find that a page for the first-time buyer tax credit has been created on Facebook, which currently has 175 million active users. Here, people can "become a fan" of the page
 and access the latest information and resources on the credit, including a consumer-focused Q&A video and TV public service announcement. Visitors can also link directly to NAHB's Federal Housing Tax Credit Web site, which provides even more information. We've also set up our own channel on YouTube, which is the Internet hot spot to share original videos with more than 200 million unique users each month. NAHB is encouraging our friends and family members to join the Facebook group and visit the NAHB YouTube channel to help get more consumers off the fence and into their first home. Contact: Brooke Fishel, x8061.
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Register now for the Spring Construction Forecast Conference...
 Online registration is now open for this very important and traditionally popular event, which happens on April 23 in Washington, DC. Panelists at the conference will discuss the impacts of the latest economic stimulus bill on residential construction, how mortgage markets are likely to change, the regional outlook and their projected timelines for a housing turnaround. In view of today's tough economic conditions, you'll find we've lowered registration fees by $75. Online registration will be available through Friday, April 17. And of course, if you can't get here in person but would like to participate in the Construction Forecast Conference, a live Webcast will be available. To register to attend the conference, sign up for the Webcast or view the latest agenda, please visit: www.nahb.org/CFC. Contact: Elizabeth Moore, x8692.
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Awards news:
 Institute of Residential Marketing Awards:
IRM Friend of the Institute
IRM President's Award
IRM Fellow
National Sales & Marketing Council:
Bill Molster Award
50+ Housing Council:
2009 Best of 50+ Housing Awards finalists
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