Friday, June 10, 2005
Greenspan wary of mortgages / Easier terms raise prices, create froth -- Joel Havemann, Los Angeles Times
Greenspan wary of mortgages / Easier terms raise prices, create froth: "Washington -- Federal Reserve Chairman Alan Greenspan warned Thursday that new, liberal kinds of mortgages are helping to drive up home prices and fueling the danger of a sharp price decline.
Greenspan said low-interest-rate mortgages also are contributing to 'froth in some local markets.' He said he continues to be bewildered by the decline in mortgage rates and other long-term interest rates even as the Fed is beginning the second year of its campaign to raise short-term rates."
Greenspan said low-interest-rate mortgages also are contributing to 'froth in some local markets.' He said he continues to be bewildered by the decline in mortgage rates and other long-term interest rates even as the Fed is beginning the second year of its campaign to raise short-term rates."
