Housing market is stabilizing

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Federal Reserve Board Chairman Ben Bernanke says there are noticeable signs that the housing market is beginning to stabilize, but that it is too early to tell whether the downturn is over. He noted that the "ultimate extent of the housing market correction is difficult to forecast" because of large inventories of unsold homes and trends in house prices. "It is early to say this problem is over," the Fed chairman told the Senate Banking Committee, and he said he wants to wait until the spring selling season to gauge the demand for housing. In response to a question, the Fed chairman said distress in the subprime market is a concern. "I am following it very carefully," Mr. Bernanke said.