As the great American philosopher, Homer Simpson, once so eloquently said: "Alcohol! The cause of and the solution to all of life's problems."
Maybe some version of that applies to housing too?
Plenty of people blame the collapse of the housing market for kicking off some of the country's current economic woes. On the other hand, could housing also be the solution?
At least that's the theory being posited by the National Association of Homebuilders. According to RealtorMag the organization is unhappy with tight government restrictions on credit, "that are dampening demand and reducing Americans' ability to purchase a home."
The government is doing this, the NAHB claims, in a number of ways, from "tightening of credit and possible stricter down payment qualifications to reducing the conforming loan limit on Oct. 1."
Without these onerous government barriers NAHB feels that "housing can be a key engine of job growth."
Bob Nielsen, NAHB chairman says that constructing just 100 single-family homes can generate more than 300 jobs and $8.9 million in taxes and revenue for state, local, and federal governments.
This is really significant NAHB says, when you consider that since April 2006 more than 1.4 million residential construction jobs have been lost, according to NAHB. "
"Yet there is demand for housing in markets that are on the mend," Nielsen says. "Home builders have plenty of shovel-ready jobs set to go but they can't keep their doors open and create jobs in their communities if federal regulators continue to shut off the credit spigot."
Brian Kesler, a senior mortgage counselor with Mortgage Master, Inc. of Baltimore, couldn't agree more. "Credit has been like a car careening out of control," he said. "First it was too lax and anyone with a pulse could get a mortgage. Now it is too hard for perfectly qualified people to get mortgages. The first thing dashed the economy and the second one hold back the recovery. There has to be a middle ground that makes sense for everyone."
To see the full video of Brian Kesler's thoughts on mortgage and the economic recovery, click here.
For additional information, visit YWGC Realty's Mortgage Master Inc services page.