The housing market is a key driver of the broader economy and is typically at the forefront of any economic recovery. A healthy housing market creates jobs and spurs consumer spending, which is why there has been renewed focus on healing housing from the Federal Reserve and the Obama administration. At a recent news conference, Fed Chairman Ben Bernanke said the housing sector is very important and that problems in that sector are a big reason why the economy isn’t recovering more quickly. According to Bernanke, the central bank is considering purchasing more mortgage debt in an effort to spur the economy and housing market. At the same time, the Obama administration has announced changes to government programs aimed at helping underwater borrowers refinance their loans. The renewed focus on helping housing is an indicator of how important a healthy market is to economic growth and the overall economy. More here.
