Housing Correction Continues per Fed Reserve

"The correction in the US housing market will "probably persist longer than previously anticipated",

Federal Reserve policymakers judged at their last meeting, according to minutes released on Wednesday.

The minutes show that Fed officials meeting on May 9 were concerned by the decline in new home sales and the rise in the inventory of unsold homes relative to the rate of turnover...." Housing Correction Continues

"Since May 9, new home sales have ticked sharply up. However, with median new home prices sharply lower and existing home sales weak, the Fed may still think housing adjustment is likely to be more drawn out than it originally thought.

Fed officials said they expected that a flattening out of house prices nationwide would produce a "gradual increase" in the savings rate over the medium term. ..."