This Day In Market History: The National Housing Act Of 1934

Zinger Key Points
  • The Dow closed at 96.94 on this day in 1934. The S&P 500 traded at around 9.47.

Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.

What Happened?

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.

Related Links:

This Day In Market History: First Draft Of Human Genome Completed

Height Capital Markets: Housing Finance Reform Plan Has 5% Chance Of Success

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.

Posted In: this day in market historyGovernmentRegulationsEducationTop StoriesMarketsGeneralReal Estate

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.