Bernanke Prepared to Cut Key Rates Again
Federal reserve Chair Ben Bernanke told the House Financial Service Committee during an appearance on Wednesday that the Fed is prepared to lower key interest rates again to bolster economic growth.

The Fed "will act in a timely manner as needed to support growth and to provide adequate insurance against downside risks," he said.

Bernanke was asked when he thought the housing market might stabilize. It's possible, he said, that by "later this year it will stop being such a big drag directly" on the economy. But home prices probably will decline into next year, he added.

"It is very difficult to know, and we've been wrong before," Bernanke said.

Also, if you have an adjustable interest rate loan or a negative amortization loan, make sure you contact your mortgage company and request a modification to stop the arm rate escalation or the negative amortization.