|Date:March 16, 2020 |
To:NAHB Members and Executive Officers
From:NAHB Chairman Dean Mon
Re:Stimulus Actions in Wake of Coronavirus
With the coronavirus hitting all sectors of the economy, NAHB is working diligently to mitigate its effects on the residential construction sector.
Our current outlook calls for markedly negative second quarter GDP growth and a jump in job losses. The Federal Reserve acted aggressively to lower the federal funds rate to effectively zero and restart a program to purchase mortgage-backed securities. These actions should help stabilize mortgage interest rates.
In the near-term, builders should be prepared for approval and other business delays, check on their subs and workforce, and watch their cash reserves. Once mitigation efforts end to check the spread of the coronavirus, housing should be set for a rebound given low mortgage rates.
The House has passed an emergency response coronavirus bill that includes tax credits to help businesses and self-employed individuals to cover some of the costs of mandatory sick leave included in the legislation. More details on the bill can be found here.
NAHB has been invited to participate in a conference call with White House officials to discuss strategies to provide needed aid and stimulus to the housing sector in the wake of the coronavirus threat that is wreaking short-term havoc on the national economy.
We have a number of ideas we will be discussing with the White House to keep the housing sector running with as little disruption as possible. Topics include:
NAHB continues to work tirelessly and do all we can at the local, state and federal levels to assure that the housing sector continues to remain healthy during this difficult time.
As always, I will keep you informed of any significant updates as they arise.
2020 NAHB Chairman
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