The Fed seems to be happy that the housing market has cooled off at a measured pace. Rates across the board have increased by more than 1% and property appreciation has stopped in most markets. The Fed Chairman Mr. Bernanke gave a very upbeat assessment of the situation on the Hill today. Here is a summary:
Bernanke: Housing Slowdown Looks ‘Orderly’
By JEANNINE AVERSA AP Economics Writer
WASHINGTON Jul 20, 2006 (AP)— Federal Reserve Chairman Ben Bernanke told Congress Thursday that the once high-flying housing market appears to be staging a safe landing.
“The downturn in the housing market so far appears to be orderly,” he said during a hearing before the House Financial Services Committee.
After five straight years of booming activity, the housing market is slowing as mortgage rates rise and still-high home prices make it difficult for some people to buy.
One of the things that Bernanke and his Fed colleagues are keeping close tabs on is the extent to which a housing slowdown will put a damper on overall economic activity.
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