NAHB Applauds Federal Reserve Move to Cal Markets

WASHINGTON, Aug. 17 - The 235,000-member National Association of Home Builders today released the following statement after the Federal Reserve Board's announcement that it is temporarily cutting its discount rate by half a percentage point in conjunction with other steps:

• "The National Association of Home Builders (NAHB) applauds the Federal Reserve Board for moving to temporarily reduce the primary credit rate by 50 basis points. NAHB also applauds the Fed's move to allow the provision of term financing for as long as 30 days, renewable by the borrower, and to accept home mortgages and related assets as collateral for discount window loans to banks. Such changes reflect the Federal Reserve Board's willingness to act quickly to help restore orderly conditions in financial markets, provide depositories with greater assurance about the cost and availability of funding, and help ease liquidity concerns that are affecting the mortgage market.
• "NAHB also strongly encourages the Federal Reserve Board to continue closely monitoring market conditions to determine whether further action is necessary, including a cut in the target federal funds rate ahead of the September 18 FOMC meeting."