Financial Watch

The Obama administration plans to implement new measures to slow the pace of home foreclosures, even as concern grows about the effectiveness of the federal government’s expensive intervention program.

White House on Friday will announce changes to its Home Affordable Modification Program (HAMP) that will include financial aid for unemployed homeowners, a new emphasis on writing down the principal of troubled loans, incentives for the holders of second mortgages and greater opportunity to refinance under the Federal Housing Administration.

A new study by the South Carolina Association of Realtors suggests the housing market is beginning to recover.

Data comparing February 2010 to February 2009 shows an increase of 46.7 percent in the number of homes, condos and villas sold along in the Coastal Carolinas. The study also compares the average price of a home, which the association says has dropped. Data comparing the median home price shows a decrease of 3.8 percent from 2009.

For people who are trying to sell their house, the drop in price could make it harder to accept an offer.

The recovery in the housing market is at risk of collapsing.

Home sales are sliding, prices are stalling and foreclosures are rising. And mortgage rates are likely to go up after next week, when the Federal Reserve ends a program that has driven them down.

The trend could threaten the broader economy, economists warn. People whose home equity is stagnant or shrinking are less likely to spend freely.

In a move that will help at least some homeowners avoid foreclosure, Bank of America unveiled a $3 billion plan Wednesday to help some of its most troubled borrowers. It said it will forgive up to 30 percent of their total mortgage balance. About 45,000 borrowers are expected to qualify, the bank said.