WASHINGTON, May 9 (Reuters) - 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.