Housing recovery relies on continued government support via HousingWire

The federal government's grip on the nation's housing finance will remain both a hug and a stranglehold, at least for the near term.

Despite strengths in the housing recovery, a sudden withdrawal of the government out of the market would prove catastrophic. The truth is, however, that the United States couldn't get out of the housing market, even if it wanted to.

"Several factors are delaying the government from stepping away," said Standard & Poor's credit analyst Matthew Albrecht. "Despite recent signs that home prices are stabilizing in some areas, the housing market is still dealing with an overhang of inventory, high nonperforming loan rates, and few qualified new borrowers."

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