Fox Business
Expand
Browse All Video
Watch Live

You're watching...

NAHB CEO: Urging Policymakers to Move on Lending

Details

  • Description

    NAHB CEO Jerry Howard weighs in on the state of the housing market.

  • Duration 4:01
  • Date

Clips

Also in this playlist...

Latest Video

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

For the -- stock exchange market moving data today home builder confidence in May rising to a five year high beating average analysts' expectations.

That from the national association of homebuilders and joining me now for a Fox Business exclusive is the CEO of that.

Organization Jerry Howard -- tell -- good to have you on the show.

That great number top of the range for the month of may.

Are you worried about a revision -- because -- had one for April.

-- actually I'm not as worried about it is as you might think -- despite the fact that we had to revise it down in April.

The comments that came in with the survey this month are something we haven't seen in a few years.

And that is traffic is up.

Not only is traffic couple but the people that are coming in.

Are better qualified to buy homes in the ready to make decisions all in all it's what you'd expect from a healthy mortgage in the month of may so we're pretty excited about it.

I hate to say is I've never back to April Jerry and the big concern was that you have a lot of traffic that boosted confidence earlier in spring for -- but then those contracts were signed.

He told me last month it was because of lack of access to credit for builders and consumers.

Is it any better.

No unfortunately their lack of credit is still what's holding back an even stronger recovery and that's something that we.

Our continuing surge policy makers to move -- That is the key factor to getting the housing markets back into a fully normal operating cycle.

What do you mean by urging policymakers is -- -- Hillary having discussions with Jerry.

Well wherever discussions with anybody got to listen Sherlund with some people who -- listening and that includes congress.

But includes the regulators and includes the White House.

Okay okay fair enough let's talk about the level of fifty were 29 we need to be at fifty that means good for homebuilders.

What are they telling you do get a sense of timing here are we a -- -- two years away from that level.

Well right now what I can say with the with a great deal certainty is that we seem to have bottomed out.

Things are are bouncing along with you see incremental increases in in the mood in production every month I think -- Barring some kind of catastrophe somewhere else in the world.

Our geo political uprising somehow I think you're gonna see consisting growth beginning at the end of this year all the way through next year and that.

Hopefully by the end of next year will be around fifty again yes.

Jerry how -- -- about the appraisers right now lord knows they got beat up like the rest of the homebuilding industry dead but as that's still an issue for homebuilders.

Is inaccurate appraisals.

Yes unfortunately.

In many of the markets around the country you have appraisers coming in that are unfamiliar with the market the local market.

You have a -- that are coming in using short sales are foreclosed properties as comps and that really keeps the deflating everything and keeps the recovery from really catching fire.

I also does give up material costs were saying on the commodities side right -- the materials are jumping higher.

That is gonna hurt the bottom line for the homebuilders -- -- dealing with that Jerry.

Yes -- that's an interesting point and it's something that's really just now getting on our radar screen the costs of materials is going off and it's starting to cause our members some worry.

We think we believe that it's a sign of the recession.

There's a lack of availability because a lot of the manufacturers of and hopefully as we continue to come out of it they'll come out of -- get back into a normal cycle.

Fred -- -- obviously we have talked about mortgage rates were still below it up 4% level are you getting a sense from your survey prepare participants.

-- those lower interest rates are filing bringing in the buyers that we need to see to bottom and to rebuild the housing market.

It's a combination of the very low interest rates -- and the fact.

That buyers are starting to sense economic recovery and it housing has truly reached bottom they're not gonna wait any longer -- they think the prices are gonna go back up.

And interest rates ultimately.

Jerry Howard exclusively talking a -- -- -- -- market moving data all the humbling stocks are up.

Gerri thank you very much for joining us thank you -- C.

Load More