Can the housing market operate on its own?

As the federal government prepares to conclude many of its housing assistance and foreclosure prevention programs,
which many believe have propped up the housing market, some wonder if
the market can operate independently. While programs such as the
Federal Housing Administration’s expanded mortgage insurance program
and the first-time homebuyer tax credit, have helped the real estate
market across the country, one in five homeowners with mortgages are
either at risk of or have been foreclosed on. In much of the country,
10 percent of buyers used the federal programs a few years ago, but
that figure has increased to 50 percent, an indication of market
dependence on the programs. While the government assistance has been
beneficial, many agree that real estate can not be a
government-sponsored phenomenon. The first pullback from the
government will be the halt of buying mortgage securities as early as
next month.