US house price rise 'will slow down': Bush

A rapid rise in house prices – which has made Americans feel wealthy and inclined to spend over the last several years – will not continue indefinitely, President George Bush’s top economist has said.

But a mild slowing in the buoyant housing market should not pose a danger to the country’s overall economic health, Ben Bernanke, chairman of the Council of Economic Advisers, told Congress’ Joint Economic Committee in Washington.

“House prices are unlikely to continue rising at their current rates,” he said, in comments which were part of wide-ranging testimony on the economy’s outlook.