Bernanke Cites Improving Housing Data

Federal Reserve Chairman Ben Bernanke said recently that the economy appeared to be stabilizing, but warned that a real recovery is still months away. "We continue to expect economic activity to bottom out, then to turn up later this year," Bernanke told the congressional Joint Economic Committee, according to a prepared statement. Bernanke cited improved sales of existing homes as evidence that things are improving. He said sales have been "fairly stable" since late last year, in part because moderating prices have made homes more affordable.

Bernanke also said credit markets have stabilized in recent weeks, allowing homeowners to refinance mortgages, which is a good sign for future stabilization.

Source: The New York Times, Edmund L. Andrews