Bernake watch.

From today's economic press conference in Texas:

Q Did the housing bubble come up at your meeting? And how concerned are you about it?

DIRECTOR HUBBARD: Let me let Ben answer that question.

CHAIRMAN BERNANKE: We talked some about housing. There's a lot of good news on housing. The rate of homeownership is at a record level, affordability still pretty good. The issue of the housing bubble is one that people have -- whether there is a housing bubble is one that people have raised. Housing prices certainly have come up quite a bit. But I think it's important to point out that house prices are being supported in very large part by very strong fundamentals.

And particularly, we have a strong economy, we have lots of jobs, employment, high incomes, very low mortgage rates, growing population, and shortages of land and housing in many areas. And those supply-and-demand factors are a big reason for why housing prices have risen as much as they have.

I think over a period of time, the housing prices are likely to stabilize. I don't expect them to keep rising at this rate indefinitely; I don't think anybody really does. But, again, I do think that the bulk of the increases are associated with strong economic fundamentals.

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My favorite quotes:
we have lots of jobs.
high incomes
very low mortgage rates

Please refer to previous blog!