10 percent unemployment, 10 percent foreclosures


More grisly news, but logical, has come since Minnesota 2020 issued an update on the weak housing market on Feb. 1.

The Washington Post reported that same day 9.1 percent of FHA-backed mortgages were in default after missing at least three mortgage payments. That was up from 6.5 percent at the end of December a year ago.

Meanwhile, the California-based RealtyTrac research organization now predicts 3 million foreclosure actions for the current year, up from 2.8 million in 2009.

Oh, and DailyFinance.com also points out that Fitch Ratings credit agency reminds us that $47 billion in interest-only loans will be reset to full payments this year.

This is occurring at the same time researchers note employment is lagging and is so far unaffected by the statistical signs that an economic recovery may be in the works.

We shouldn’t be surprised. There’s essentially 10 percent unemployment, and 10 percent mortgage failures across the country. Data show only slightly better negative news in Minnesota, but nothing to brag about.

Minnesota could use a boost to both employment and the housing market. As we’ve noted, there are tools for both.