This is a good article focusing on what could happen if the government pulls back some of their investing in the home market. This is the test that the Fed is worried about. They could stop buying the mortgage backed securities in March as planned leaving open a market to investor money that still does not have faith in the market. The biggest worry is inflation.
This also will show how much the market can hold up on its own. I always question when the government gets involved because if the market does not stay afloat, and that is if the governemnt pulls out fully, then it shows that the housing growth of the past year was fake. If it holds up then the investment the government made in mortgages worked to boost the private sector's confidence in these securities.
Only time will tell and it is most likely the government will not fully stop the money because they are scared the market is not ready.
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