Boston Real Estate Law News - Find a MA Real Estate Attorney

Boston Fed Reserve President Eric Rosengren Asks Questions

The Boston Federal Reserve held a conference on Wednesday to help real estate professionals, banking professionals and Boston real estate attorneys understand the issues that contributed to the economic downturn these past few years.

And as the Federal Reserve Bank of Boston's President Eric Rosengren stated in his opening remarks, lower real estate values are intrinsically tied to the economy.

He further elaborated that the recovery from a real estate slump would be quite difficult.

The economic mess and the contributory effect of the real estate market will remain a hotly debated issue among real estate professionals and Boston real estate attorneys alike. It's an issue that has so many sub-issues and so many points of view that it may take years of research and study to isolate the exact impact that the housing bubble had on the economic downturn.

Eric Rosengren spoke on Wednesday of the role monetary policy had to play in the real estate bubble. But as some would argue that we are still in the midst of the economic crisis, answers lay somewhere in the distant future.

Was the housing bubble the product of low interest rates and easy-to-acquire loans?

Or was it the product of buyer and developer speculation?

Eric Rosengren presented several of these questions to participants of the conference. In addition to several causal issues underlying the Great Recession, he asked researchers to focus on questions of mortgage lending to the middle-to-low-income borrowers.

As Boston rolls out of this real estate mess, we'll likely be seeing greater efforts to regulate the real estate lending markets. There will likely be some hits as well as some misses. But that's the nature of the beast, I suppose.

Related Resources