The National Association of Homebuilders offers a measure of builder confidence based on what they are seeing in the business. The good news is that the index rose one point to 9 this month. That's off the all-time low recorded in January. The bad news is a rating of 50 is neutral and anything below that reflects a negative outlook. The current rating of 9 doesn't suggest that homebuilders feel things are going to get better any time soon.

On the brighter side, Citibank and J.P. Morgan have decided to stop all new foreclosures for three weeks for properties which are the owner's primary residence. The government also sees the importance of getting the housing industry back on solid ground and is working toward a plan for buying up consumer mortgages. Once purchased, the government would be able to reduce the outstanding principle of the mortgage, presumably commensurate with the reduced value of the home. Consumers would be allowed to refinance at the new level and lower their monthly payments. While details remain to be worked out, the plan is intended to help consumers stay in their homes.

For those who bemoan the bank and auto industry bailouts saying "Where's my bailout?" Here it is. Of course, this is only one of several consumer bailouts being proposed or already approved. There are also plans to increase payments to the growing legions of unemployed in order to forestall mortgage defaults and other economic hardship in that group. Income tax credits are planned to increase the weekly take home pay of those who still do have jobs. The centerpiece of the economic stimulus plan, of course, is the provisions for new job creation across the country. The plan would save or create millions of jobs largely through infrastructure improvement and repairs jobs in all 50 states.

All this is designed to keep the American consumer in their homes and buying goods that support the overall economy. In January alone, according to industry group RealtyTrac, 275,000 new foreclosures were filed. With unemployment still rising, that number could get even worse. A glut of foreclosed homes being auctioned off will continue to depress home prices nationwide, but particularly in those areas that are seeing the worst unemployment rates due to large factory closings.

It's clear that the government recognizes the problem and realizes that something must be done and done quickly. That, at least, is a good sign.

Author: Brad Sylvester