Federal Reserve officials are worried that serious delinquency and foreclosure rates are moving higher and house prices are still under downward pressure. "We have yet to see evidence of a sustained recovery for the housing market. Mortgage delinquencies for both subprime and prime loans continue to rise as do foreclosures," Fed chairman Ben Bernanke told the Dallas Regional Chamber on Thursday. The minutes of the March 16 Federal Open Market Committee reveal that Fed officials are not impressed by the improvement in home sales in the second half of last year. It may largely reflect "transitory effects from the first-time homebuyer tax credit rather than a fundamental strengthening of housing activity," the minutes say.
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