Record low domestic interest rates spurred a housing market recovery that allowed the banks to grow their mortgage books, post record profits and increase dividend payout ratios. (afr.com)
It's also worth noting that ARMs can be a useful tool for spurring the housing market. (hsh.com)
The white paper, The U.S. Housing Market: Current Conditions and Policy Considerations, calls for increased lending to creditworthy home buyers and more loan modifications, mortgage refinancings, and short sales to reduce the rising inventory of foreclosed homes and help stabilize and revitalize the housing industry; an approach long recommended by NAR to help spur the housing market recovery. (realtormag.realtor.org)