The recovery of the housing market to lift the faltering economy is still blurry, according to an article in Business Week by David Bogoslaw.

Housing inventory fell to 10.1 months of supply from 10.7 in March and was well below the peak 13 months of supply, After a couple of strong months, there was a lull in purchases of homes priced between $150,000 and $200,000, which had had the strongest growth, Goldman Sachs said in a May 28 research note. The key to further paring excessive housing supply is a slowdown in foreclosure filings, which Goldman doesn’t see as likely. In March, foreclosure filings were 15% higher than the total inventory of new homes for sale, Goldman said, citing RealtyTrac data.

Out here in the trenches, I’m still seeing lots of foreclosures.  Also still seeing an unwillingness by lenders to work with people needing to refinance or give them time to get caught back up.  The cycle continues …