Bernanke calls for lenders to act quickly on distressed homes

In his second ever press conference as chairman of the Federal Reserve, Ben Bernanke was asked a question about the housing market, and the Wall Street Journal published his response. Bernanke said that while lower mortgage rates and falling housing prices have helped some homebuyers, those falling prices present a double-edged sword: people are afraid of “buying into a falling market.” That’s why he called on lenders to either modify loans where appropriate, or speed the process of foreclosure, so that owners’ confidence is restored and those homes weighing down on prices are taken “out of the pipeline.” Once distressed homes are off the market, Bernanke implied, housing prices will no longer appear so low and stability will be restored to the housing market. [WSJ]