WASHINGTON May 9 A top U.S. Federal Reserve
official said a recovery has taken root in the American housing
market but that resolving uncertainty over mortgage regulations
would make the recovery stronger.
"A sustained recovery in the housing market appears to be
under way," Elizabeth Duke, a board member at the Fed, said in a
speech on Thursday.
However, Duke said it still appeared that many borrowers
were having difficulty obtaining loans, and that uncertainty
over regulations was leading lenders to be shy about granting
mortgages. She said it remained unclear how much of that
uncertainty would be lifted anytime soon.
"The path to easier credit conditions is somewhat murky,"
Duke told the Housing Policy Executive Council in Washington.