Housing analysts say they have to raise their forecasts on mortgage delinquencies and foreclosures as unemployment creeps up. Despite a rising number of home sales and other positive data, the broad housing market won’t really recover until employment picks up.
“The rise in unemployment rate is an indicator of people’s inability to pay mortgages,” said Mark Fleming, chief economist with First American CoreLogic, which analyzes loan data. “You have risk that’s not limited to prime, subprime or Alt-A, but affects everyone across the board.”
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