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Nesgroup address: misc.consumers.house - Date & Time for the message: 19 May 2005 05:10:23 -0700 /

Author of the message: "MrPepper11"

Title of the message:
Fed Shows Concern At Signs of Housing Bubble

Text of the message:
Wall Street Journal / May 19, 2005
The Fed Starts to Show Concern At Signs of a Bubble in Housing
By DAVID WESSEL
In the debate over whether the housing market is a bubble about to
burst, the crowd that argues it isn't has been able to cite reassuring
utterances by Federal Reserve officials. But there are proliferating
signs that the housing market is looking a bit frothy. And now the U.S.
central bank is beginning to worry more about it.
It isn't only that housing prices keep rising faster than almost
anything else, up 10% on average nationally in 2004, according to the
U.S. Office of Federal Housing Enterprise Oversight, and up 25% or more
in the hottest markets in California, Florida and Nevada.
It isn't only that the clever mortgage industry keeps coming up with
new ways to lend people money to buy houses that involve ever-more
leverage and little -- or sometimes no -- down payment.



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