Kankakee Daily-Journal - Kinzinger says home building key to restarting economy

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A major piece to getting the sputtering economy running is restarting the nearly-dormant housing market, but employment fears are successfully blocking new-house construction more effectively than any lumber or nail shortage could.

"We have to create an environment of certainty. Uncertainty is the biggest enemy," said U.S. Rep. Adam Kinzinger, R-Manteno. "When people are not sure if they will still have their job in two years they won't invest."

Kinzinger was in Kankakee Thursday to speak the Home Builders Association of Kankakee and conducted an interview with The Daily Journal. Eight months into his two year term as representative of Illinois' 11th Congressional District -- a district that includes much or all of Kankakee, Will and Grundy counties, among others -- Kinzinger has had a front-row seat for historically turbulent economic times.

Back home for the congressional recess, Kinzinger said the collapsing existing housing market and the nearly nonexistent new house business is a major obstacle in righting the nation's economy.

"We have to get consumers confident again, that's the linchpin," he said. "People are watching the stock market to see what that does whether they are invested in it or not. When business holds back, they don't hire people and those people don't build.

"We have to send the message that those with money sitting on the sidelines need to get back
in the game."

Local interest rates on a 30-year mortgage Thursday was at 4.125 percent. But even a rate that low isn't inspiring house sales or construction.

House sales within Kankakee County for June totaled 112. The county had not experienced that strong a month since the 117 total of November 2009. But prior to this June's number, the previous months had total sales of 77 in May and 75 in June.

Regardless of how the Federal Reserve adjusts the prime interest rate, Kinzinger said housing is not likely to rebound. The rebound will only happen when buyers feel safe with their employment.

"Even if the prime rate was dropped to 2 percent, it's not going to help. It's consumer confidence," he
said.

And with the national unemployment rate hovering above 9 percent, that doesn't inspire consumer confidence. Kankakee County's unemployment rate remains one of the highest rates in Illinois at
10.7 percent according to June figures.

President Obama, Kinzinger said, promised unemployment below 8 percent after the massive federal financial stimulus program was adopted.

"Unemployment was going to stay below 8 percent, he said," Kinzinger noted. "It hasn't gotten down to 8 percent. My focus is "How can we get out of this?' America was not built on the quality and size of its government. America was built on the quality and size of its people."

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