Ben Bernake, the Federal Reserve chairman, is considering buying more mortgage-backed securities to help the other fixes hoping to serve as a trickle down backbone for strengthening the rest of the economy. He comments: “The housing sector is a very important sector. Problems in that sector are a big reason why our economy’s not recovering more quickly.”
Economists believe that more people must buy homes to boost consumer purchases in other sectors (furniture, appliances, home repairs equipment) The housing market has led the economy out of recession in the past by creating jobs and increase both endurable and durable spending.
Although the housing market continues to be bogged down by a high rate of foreclosures, home sales rose 1.5% last month.
Source: realtor.com
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