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You very much.
-- more on this mortgage interest deduction of bottled water bring in David.
David -- is if the national association of humbled as the chief economist their dividend -- so while it is -- David that's terrible.
But David how -- air and -- -- you know another we're gonna talk about home builder sentiment but first -- talk about what our correspondent Washington -- just reporting on this.
In the you know congressional leaders once again wanna go after the mortgage and that can I know you hate it -- -- you're gonna fight it.
But -- you weren't what Peter just said is true that something's gonna change here.
Certain certainly we're worried -- mean that's why we have pulled out all the stops we've gotten our 140000.
Members across the country go right to their individual.
Representatives in Washington to say what a bad -- -- this is.
If for instance you were to reduce that cap from the current million dollars to 500000 dollars almost all of that pain.
Would be on the coasts that's where the expense -- homes are because it's expensive to live there and those people would be the ones that would bear most of the burden.
Reduced mortgage interest deduction from a cap like that.
Okay that's obviously a wider group of looking at -- -- there are several says that are affected by that lets get into the index because that man a big surprise and really not want -- market like today.
A David in particular we saw another decline -- up until it had a decline in builder confidence but it's not the usual suspects the economy.
What you're saying is credit what you're seeing is land issues what's the number one problem right now the -- the report.
Well I think the number one problem is the access to credit far there -- borrowers for people who want to buy a home interest rates are very low but it really isn't the price of credit that's the problem it's the access to credit.
So credit thresholds are still high in many people are cast doubt of the potential for being a homeowner because -- can't get a mortgage.
But we're also seeing stress is just from the whole industry trying to rebuild itself.
No from the worst -- recession depression really in housing.
Since the thirties and it's gonna take awhile for the industry to come back again and those stresses are starting to show.
-- you know we're saying we're looking at a chart of the regions and I think what surprised me here is that we saw weakness -- what had been a stronger sections of the country the southeast.
And the midwest I get the northeast.
Actually stayed unchanged at 39 none of these are great numbers were still below 5044.
For the overall index but on a regional basis.
Was there one particular area of the country that you think is a bigger problem.
Well I think those places that have it didn't increasing or exactly those spaces that are beginning to come up against these barriers so it's sometimes it's difficult to get land.
Already approved and ready to build long sometimes it's difficult to get labor because those workers have gone to other industries.
Sometimes it's more expensive to get building materials because.
A plant still have an open up again to their full potential.
And so it actually is beginning to affect the very places where we were getting to see a little bit a light.
You know David I wanna look at the homebuilding sector look at these stocks -- -- -- through kind of some of the story with these longer term -- that we're showing our viewers -- you look at the builders.
Here's the -- you mention that land of problems that got problems actually developing land infrastructure.
The building economy.
Was decimated during the recession but some of these stocks that we follow our view follow have been incredible performers.
And I'm wondering if this is an overall sign that the builders themselves are gonna face some tough times -- the next few months from an economic.
Perspective of course -- Right and yes they admit there will be some bumps along this road I think that is.
Optimistic attitude that both the market and the homebuilders are showing.
Is correct and I think it will continue I -- I expect to see a significant increase in housing starts this year.
But along the way we're gonna see these detours if you will these little bumps in the road.
As we try to rebuild the whole sector.
David crowd David always good to see you and Jerry you're always are so great to speak about.
What's happening with -- across the country we're following -- stocks David thank you.
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