U.S. says housing market still "fragile"

(Reuters) - Another 26,877 Homeowners won permanent reductions in their mortgages in November under the Obama administration's main foreclosure prevention program but the housing market remains fragile, a report on Monday said.

The number of modifications granted in November was little changed from the 26,102 homeowners in October who were granted lower monthly payments.

U.S. housing authorities said the Home Affordable Modification Program, or HAMP, now has won 750,748 permanent modifications since the program was launched in 2009. Some 909,953 modifications were started but 159,205 were later canceled.

When it launched the program, which provides financial incentives to servicers who rework mortgages for struggling borrowers, the Obama administration hoped it would reach five million borrowers. So far, 1.75 million trial and permanent modifications have been started.

The Treasury and the Housing and Urban Development Department said the latest data pointed to "subtle improvements in the market over the past year, but underscore fragility as the overall outlook remains mixed."

The administration has been trying to revamp its housing programs to make them more effective and the Federal Reserve recently has stepped up its calls for action to prevent a weak housing market from imperiling a broader economic recovery.

Last Friday, the head of the New York Fed, William Dudley, suggested that principal writedowns might need to be considered as he warned that waves of foreclosures were likely to continue.

"There are workable solutions to our housing problems at costs that I deem very reasonable relative to the economically inefficient path we are on," he said.

(Reporting By Glenn Somerville; Editing by Andrea Ricci)