Obama administration sees unsettled home prices keeping market down

Existing home sales are rising and home affordability is high, but the Obama administration believes the nation's housing market remains fragile because prices are unsettled.

In its latest housing scorecard released by the Department of Housing and Urban Development and the Treasury Department, the administration said mortgage delinquencies in January continued to decline from record levels seen at the beginning of 2010. Although that is partly due to the foreclosure moratorium enacted across the nation following the robo-signing fiasco last fall. The administration expects the decline will be temporary as lenders revise and resubmit foreclosure paperwork this year.

Although existing homes sales rose in the first month of 2011, the figure is still lower than the levels seen through much of the first half of 2010, according to the administration.

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