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Will the Fed rev the housing engine?

Posted on 19 July 2012

One can get a really clear look at the problem by considering America’s housing market. In normal times, central bankers will tell you, housing is one of the main mechanisms through which monetary policy affects the economy. Lower interest rates encourage more buying and building (and higher rates quickly chill activity).
But in this recovery, housing has been relatively unresponsive to policy; several large markets had inventory overhangs and every market was heavily affected by the collapse in the market for mortgages………………………………………..Full Article: Source


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Laxman - who has written 28515 posts on Opalesque Real Estate Briefing.


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