Fed's comments on inflation hinder housing rebound

06/20/2008 | Reuters

Anti-inflation rhetoric from U.S. Federal Reserve officials has had a chilling effect on the country's struggling housing market. Hawkish comments by Fed Chairman Ben Bernanke and Vice Chairman Donald Kohn led money markets to see an interest-rate increase in August as a near certainty. That produced a steep rate increase for fixed-rate mortgages, a drop in mortgage applications and a plunge in home-loan refinancing.

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