Hub Fed chief: Housing prices might plunge

The residential real estate market is going through its worst investment period in 50 years - and it could get even rougher if the U.S. economy slows significantly in the coming year, Boston Federal Reserve president Eric Rosengren warned yesterday.

Rosengren, who last month was the lone Fed member to push for more aggressive interest-rate cuts to help the ailing economy, said the housing market was the clear “laggard” of the economy over the past year.