Chicago Condo Directory

Ben Bernanke, Chairman of the Federal Reserve, was back on Capital Hill to discuss concerns that growing problems in the real estate market around the country could lead to a recession.

The testimony came two days after the Fed moved to lower interest rates, giving many homeowners with adjustable mortgage rates an immediate reprieve on rising mortgage payments.

The mortgage market was hit by an increase in foreclosures, particularly in the subprime market.  The inventory of homes and condominiums on the market continues to increase as foreclosures rise and new developments are completed.

Bernanke reassured lawmakers that the Fed would work aggressively to offer homeowners some relief from mounting financial pressures.  However, he stressed the need to clamp down on poor loan practices that led to many foreclosures.

President Bush has also stressed the need to work with Congress in addressing the nationwide credit crisis.  Whether lawmakers will be able to offer a solution to the growing problem remains to be seen.

In the Chicago area, foreclosures on Chicago Condos and homes were up 12.5 percent during August, according to RealtyTrac, Inc.

Many experts believe that the Fed will once again lower interest rates later this year.

Technorati Tags: Chicago Foreclosures, Chicago Homes, Chicago Real Estate Market, Ben Bernanke