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Federal Reserve States That Housing Market Needs More Aid

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Various officials from the Federal Reserve believe that the United States government needs to do more to stimulate growth within the housing market. While mortgage loan interest rates are at their lowest levels in history, officials would like to see the rates drop even further to encourage more homebuyers to enter the market.

While some officials believe that the mortgage loan interest rates need to fall a little further to produce growth, others believe that the government can do even more to boost the housing market to desired levels. Some believe that the government should be doing more to encourage the buyback of mortgage mortgage-backed securities.

These comments come after the Federal Reserve hinted at the fact that their ability to boost economic growth and improve the unemployment rate has peaked. The Federal Reserve chair, Ben Bernanke has petitioned the government to take action and ultimately assume a larger role in reviving the housing market.

Financial experts have expressed support for the Federal Reserve’s call for help, and believe that if additional help is not provided, all of the previous actions taken would have been nothing more than a waste of resources.

The job market has shown signs of improvement, as the unemployment level hit its lowest level since early 2009. Officials, though, believe that unemployment is still too high, and that growth has been agonizingly slow. They believe that the housing market is an absolutely essential piece to the health of the economy, and that the job market will actually improve if housing sales and prices improve.

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About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

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