An article today titled ‘Unemployment spreads distress in U.S. home loans’ says RealtyTrac reports that cities in California, Florida, Nevada and Arizona dominated in numbers of foreclosures in H1, 2009.  The article says “the source of the mortgage trouble has swung from lax lending standards to unemployment” and that RealtyTrac in its midyear metropolitan foreclosure report says that “More than 20 percent of areas with above-average foreclosure activity were in Oregon, Idaho, Utah, Arkansas, Illinois and South Carolina in the first half of the year. That shift points to growing unemployment more than to fallout from subprime and adjustable-rate loans”.  RealtyTrac reported a record 1.9 million foreclosure filings on more than 1.5 million properties in H1 2009, and forecasts 4 million filings for the year.

That there would be a co-orelation between unemployment and foreclosures makes sense to me, and for me this ties into my ongoing concern that until Job losses are reversed for extended period of months any meaningful U.S. economic recovery is unlikely.

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