The U.S. housing recovery appears to be real. Inventories of unsold homes are falling fast, new home sales are performing even better and housing starts appear to be on the upward trajectory. Over the past year, almost half the nation's cities saw double-digit increases in home prices, but homes remain affordable and are still 31.5 percent below their 2006 peak. Despite sluggish employment growth, more young adults are moving out of their parents' basements and forming new households while still historically low mortgage rates are smoothing the path to homeownership. But credit conditions in the mortgage market remain tight--and without the government support of Fannie, Freddie and the FHA, activity would be even lower. Where is the housing market? Does it really have a firm foundation? Will pent-up demand fuel steady growth? Was some of the winter weakness not altogether weather-related? Or are prices back in long-term equilibrium?