NAHB Chief Economist David Seiders: U.S. Now in 'Mild Recession'

Huntington News (04/16/08); Kinchen, David M.
The U.S. economy is in a "mild recession" due to the lingering housing slump and the negative impact it has had on consumer sentiment, National Association of Home Builders Chief Economist David Seiders said on April 15. He urged Congress to address the economy and the housing market by offering a temporary home buyer tax credit, modernizing the Federal Housing Administration and reforming oversight of the housing-related government-sponsored enterprises. "Stopping the downward trend in housing prices is key to bolstering consumer confidence as well as mortgage credit quality, and a temporary home buyer tax credit is the best way to do that," according to Seiders. He also said the NAHB has revised its housing starts forecast from a 27-percent decline in 2008 to a 30-percent decline to reflect the continued problems in the housing market and the impact on economic growth.