Soft Landing For Housing Market

Federal Reserve Chairman Ben Bernanke told Congress on Thursday that the once high-flying housing market appears to be experiencing a safe landing. One of the things that Bernanke and his Fed associates are keeping close tabs on is the extent to which a housing slowdown will put a damper on overall economic activity.

"We recognize the risk, ... and we are watching it very carefully," he said. The housing market has been a top economic performer. This sector of the economy has racked up record-high sales five years in a row.

Rapid appreciation in house prices has made homeowners feel wealthy and has powered consumer spending, helping the economy move solidly ahead. But the cooling of the housing market is expected to contribute to a slower pace of general business growth across America in the coming months. More...