Fed Officials Concerned About Housing Recovery

Washington, DC, Jan. 6, 2010--Declining government support could hamper a fragile housing market recovery, some Fed officials noted in their meeting last month.

"Some participants ... noted the risk that improvements in the housing sector might be undercut next year as the Federal Reserve's purchases of (mortgage-backed securities) wind down, the homebuyer tax credits expire, and foreclosures and distress sales continue," according to minutes of the Fed's December meeting.

Labor market weakness was also a concern with officials, saying they expect unemployment to remain high for "quite some time."

Fed officials said that in general, housing gains would probably continue.