Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.
On this day 85 years ago, President Franklin D. Roosevelt enacted the National Housing Act of 1934.
Where The Market Was
The Dow closed at 96.94. The S&P 500 traded at around 9.47. Today, the Dow is trading at 31,500 and the S&P 500 is trading at 3,911.
What Else Was Going On In The World?
In 1934, bank robber and public enemy No. 1 John Dillinger died in a shootout with the FBI in Chicago. The famous “surgeon’s photograph” of the Loch Ness Monster was taken in Scotland. A gallon of gasoline cost 10 cents.
National Housing Act
The National Housing Act was one of many pieces of Great Depression-era legislation aimed at jump-starting the frozen U.S. economy. The act created the Federal Housing Administration for the purpose of providing credit to lenders to make home repairs and perform home construction. The National Housing Act helped keep the housing market moving when there was very little liquidity in the traditional lending market throughout the Depression.
The National Housing Act also led to the creation of government mortgage aggregator the Federal National Mortgage Association FNMA, or Fannie Mae. Fannie Mae was ultimately a prime player in the creation of the secondary mortgage bond market that sprung up in the 1970s and facilitated a national housing market boom in the early 2000s.
Photo: Federal Housing Administrator Stewart McDonald discusses with Senator Robert F. Wagner, author of Wagner Housing Act, the recommendations of President Roosevelt for amendments to the act.
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