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Unformatted text preview: during 2009. The blame lies in the sputtering labor market, experts say. More people are losing their jobs, as evidenced in the steady rise in initial unemployment claims, and this is prompting them to default on their mortgages. "You can't expect a recovery in the housing market in the absence of a recovery in the jobs market," said Jay Brinkmann, the association's chief economist. "It takes a paycheck to make a mortgage payment." 2 That recovery is not expected anytime soon. Economists are predicting the U.S. economy will shed 120,000 jobs in August, according to Briefing.com. Few are willing to bet that the private sector will ramp up hiring in coming months. Short-term delinquencies, meanwhile, will likely continue rising , said Anthony Sanders, a real estate finance professor at George Mason University. And they will turn into a new wave of foreclosures unless the borrowers can land a job. "This is all negative news for the housing market," he said....
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- Fall '09
- Economics, Mortgage Bankers Association