The biggest obstacles to a housing market recovery are credit availability and job creation, according to the National Association of Realtors (NAR).

"Modest changes in mortgage rates are less important to a housing market recovery than the number of people who are able to obtain mortgages," said NAR Chief Economist Lawrence Yun.

NAR’s board of directors recently approved a credit policy urging the mortgage lending industry to reassess and amend their policies so more qualified homebuyers can become homeowners, according to a statement.

"Currently, the overly tight underwriting standards are holding back the pace of housing market recovery," said Yun. "In particular, creditworthy small business owners and those who want to purchase investor properties have encountered extreme difficulties in obtaining a mortgage. Additional creditworthy borrowers who are willing to stay well within budget and meet reasonable underwriting criteria should be able to obtain a loan to help speed the housing and economic recovery."

As Congress reconvenes, the NAR hopes tax cuts are extended for everyone, in hopes of more job creation.
"If the Bush tax cuts were extended for everyone across the board, an additional 400,000 additional jobs could be created in 2011, with home sales rising by an additional 60,000 to 80,000," said Yun.