Fed Slowing Housing Market Plan, But Remains Remain At Low Level

WASHINGTON (AP) -- Even as it noted the economic recovery, the Federal Reserve decided to extend a program intended to lower mortgage rates and prop up the housing market.

Even so, rates on home loans are expected to remain low.

With the economy on the mend, the Fed said it now plans to reach its goal of buying nearly $1.5 trillion in mortgage-backed securities and debt by the end of March, rather than by the end of this year as originally scheduled. It's the second time since August that the Fed has opted to slow emergency programs designed to encourage spending and boost the economy.

In a far brighter assessment, Fed policymakers said: "Economic activity has picked up following its severe downturn." In August, policymakers had observed that economic activity was "leveling out."

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