Boston Fed president downgrades housing market

The U.S. housing market is headed for its worst performance in 50 years and home prices could fall more rapidly this year if the economy weakens, Boston Federal Reserve President Eric Rosengren said today.

He said previous downturns in the mortgage sector were generally associated with hard economic times, although he steered clear of predicting a recession.

"History may or may not repeat itself," he told an audience of industry executives at a meeting of the Connecticut Business and Industry Association. (Reuters)