Obama : Housing Market Is ‘Biggest Drag’ on U.S. Economy

President Barack Obama said the U.S. housing market is “probably the biggest drag” on the nation’s economy.

Obama said it’s crucial to get the housing industry out of its economic slump so “people will have more confidence, will spend more, more people will get hired and overall, the economy will improve.”

“It’s still tough out there,” Obama said at a town hall discussion at the headquarters of Facebook Inc., in Palo Alto, California. “It’s getting better in some areas.”

The president is at the start of a three-day, cross-country trip to promote his policies to reduce the nation’s budget deficit.