The National Association of Realtors(R) will be sending letters to their members of Congress and signing a model house that will be taken back to Washington as a visual symbol of the importance of quick congressional action to end the housing and economic crisis facing our country today and to ensure that government help is directed to America's families.

The U.S. Treasury and Congress need to work together to ensure that the American people benefit from the economic recovery plan," said NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists, Long Beach, Calif. "The Treasury Department has gotten off track by focusing too much attention and stimulus money on Wall Street and banks that are in turn using the money for mergers and acquisitions. The administration needs to get back to the original intent of the plan - stabilizing the mortgage and housing markets - to help families avoid foreclosure."

NAR submitted a plan to Congress and the administration in October, calling on Congress to enact a new housing stimulus package that would help boost the economy. The plan includes consumer-driven provisions that would eliminate repayment of the first-time home buyer tax credit and expand the credit to all home buyers; make the increased mortgage loan limits permanent; focus the economic stabilization efforts on supporting the housing and mortgage markets instead of providing capital to banks with no strings attached; and permanently prohibit banks from entering into real estate transactions.

In addition, NAR initiated a memberwide call for action, urging Congress to act promptly to protect homeowners and preserve the dream of homeownership. NAR has sent letters to Congress and the Treasury Department calling for the administration to refocus the Federal Housing Finance Agency's efforts on restoring strength to the mortgage-backed securities market, which would help lower mortgage rates for all home buyers and for owners who need to refinance.

A recent NAR economic analysis demonstrates that a reduction, or a buydown, of interest rates by just 1 percentage point could result in up to 840,000 additional home sales and reduce the inventory of homes by as much as 20 percent. The current 9.9-month inventory supply would decrease approximately to a 7.5-month supply. "The result of these changes would stabilize homes values and the housing industry," Gaylord said.

A lower interest rate combined with removing the home buyer tax credit repayment would reduce inventory by an additional 10 percent, down to a 6.5-month supply, and would produce modest home price gains of 2 to 4 percent. Such price gains would provide up to $760 billion in housing equity for the nation's 75 million homeowners.

"Its clear there can be no economic recovery without a stabilized housing market. As Realtors(R) from all over the country gather in Orlando this week, we are united in our message - Congress and the new administration need to act immediately to help America's families protect their homes, savings and futures," Gaylord said. "Our members see firsthand the impact that an unstable housing market is having on communities all across this great country, and there is no time to waste."