Few will argue that there is some type of recovery occurring. Jobs will certainly help many qualify for home loans, but the higher rates have all but shut off refinancing. The early part of this recovery was fueled a reduction in inventories, and then by government stimulus (cash for clunkers, QE-whatever), and now it seems that the job market is improving. Granted, as more unemployed begin looking for work again the improvement in the numbers will be limited, but things are better than 6 months or a year ago. Unfortunately for housing sector, home sales and new home construction continue to face a long and difficult road to recovery. While sales of existing homes have risen for three consecutive months, most of the increase appears to be due to a rise in foreclosure sales and distressed transactions. This will be the theme for a long time.