The Federal Reserve is considering buying more mortgage-backed securities to help improve the housing market. According to Ben Bernanke, the Federal Reserve chairman, such a move could further reduce borrowing costs.
“The housing sector is a very important sector,” Bernanke said at a news conference. “Problems in that sector are a big reason our economy’s not recovering more quickly.” The Fed is holding a two-day policy meeting — which ends Thursday — to weigh options.
Economists believe that if more people were buying homes then it could lead to a boost in consumer purchases for other sectors. Improving the housing market has led the economy out of recessions in the past, creating jobs and increasing consumer spending.
The housing market continues to struggle due to a high rate of residential foreclosures, which has affected home values in general. Currently there are about 7.5 million homes are either in foreclosure or delinquent on their mortgage.
If you are a homeowner at risk of losing your house to foreclosure, consider getting foreclosure prevention help from Homeowners Servicing Company. HSC offers foreclosure alternatives such as short sales, loan modifications, and much more.
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