Housing Secretary: Homebuyer tax credit on the table due to ‘concern’ for industry

Shaun Donovan, Secretary of Housing and Urban Development, said Sunday the housing market’s July woes were “worse than expected” and the administration might support a new homebuyer tax credit.

In an interview on CNN, Donovan said the administration is “concerned” about the path of the industry. He defended the Obama administration’s record on supporting the housing market, amid new signs the market is struggling alongside the broader economy.

Donovan did not rule out a further homebuyer tax credit to support the market. Congress passed a homebuyer tax credit to support first-time buyers. The credit has now expired.

“I think it’s too early to say after one month of numbers whether the tax credit will be revived or not,” Donovan said.

The administration has argued their policies have helped stem the decline in home prices, but new numbers this week showed plunges in the sale of existing and new homes. The administration’s efforts to reduce home foreclosures have also come under fire for showing limited success at permanently modifying loans.

“There is no question our policies have made a real difference. The real question is today. The July numbers were worse than expected,” Donovan said. “We are concerned.”