Washington -- U.S. Treasury Secretary Henry M. Paulson said Thursday corrections in the housing market were due after years of unsustainable appreciation.
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Behind the current housing slump is a sound economy, he told the Senate Banking Committee.
"Fundamentally strong, diverse and resilient," Paulson said of the economy, echoing Federal Reserve Chairman Ben Bernanke's earlier remarks to the same committee. Economic growth, "in the coming quarters will be slower than what we have seen in recent years."
Bernanke told the committee solid growth in recent years had created enough reserves for major financial concerns to weather current conditions.
Paulson also said the economic stimulus package signed into law Wednesday would send checks to more than 130 million American households by the end of summer, creating more than 500,000 jobs by the end of the year.
Help for struggling homeowners was also on the way, he said. More than 454,000 subprime borrowers received refinancing help with their loans in the second half of 2007, Paulson said, and the rate of homeowners finding help has doubled in the fourth quarter over the third quarter of the year.
"I expect this progress will accelerate in 2008," he said.
Copyright 2008 by United Press International.