The Fed can't spark a recovery in the housing market by itself because mortgage rates don't...

|By:, SA News Editor

The Fed can't spark a recovery in the housing market by itself because mortgage rates don't predict where home prices are going, says economist Robert Shiller. Bernanke only has one policy tool he can use and this is it. He can't change the "‘animal spirits’” that a full-fledged housing recovery will depend on, so there's no reason to call this a major turnaround just yet.